Illumina $ILMN stock retook its 200 day moving average on March 13, 2023, as Carl Icahn positioned for greater influence over the stock.
Illumina Responds to Icahn Partners’ Nomination of Directors
Icahn Partners gave Illumina notice on March 13, 2023, that they intended to put forward three candidates for the Board of Directors election at Illumina’s 2023 Annual Meeting of Shareholders: Jesse Lynn and Andrew Teno, current Icahn employees; and Vincent Intrieri, a former Icahn employee.
Mr. Icahn made it clear and unwaveringly clear that any resolution had to grant him excessive power and influence. The Board has determined that Mr. Icahn’s three nominees do not possess the necessary knowledge and experience to serve on the Board of Illumina, and that doing so would not be in the best interests of shareholders. The Board advises shareholders not to back Mr. Icahn’s nominees.
Shares of Illumina have increased by more than 20% since activist investor Carl Icahn decided to start a proxy fight over what he considered the company’s careless purchase of cancer-screening startup Grail.
Carl Icahn noted that Illumina stock has declined since purchasing Grail. The value of the shares peaked in February and August 2021 and has since decreased. In August 2021, Illumina completed the acquisition of Grail. The acquisition of Grail by Illumina was forbidden by the European Commission in September.
Since that time, Illumina has had to account for Grail as a separate entity on its balance sheetThe balance sheet is a snapshot of a company's financial position at a specific point in time. It shows the company's assets, liabilities, and equity.. According to Evercore ISI analyst Vijay Kumar, this is troubling because Grail continues to spend between $500 million and $700 million annually despite the fact that the state of the financial markets is getting worse.
Icahn, who owns 1.4 percent of Illumina, informed other investors in a letter on Monday that he intends to propose three candidates for the board’s nine positions. This follows weeks of unsuccessful private negotiations with the company.