Key Summary: Carl C. Icahn, holding a 1.4% stake, launched a series of aggressive actions against Illumina starting March 2023, criticizing the $8bn Grail acquisition for significant value destruction. He issued numerous open letters pushing for CEO and Chairman replacements, highlighting concerns over management decisions and corporate governance. Despite shareholder elections reaffirming the incumbent board in May 2023, Icahn's persistence led to leadership changes and efforts towards divesting Grail by December 2023, reflecting ongoing shareholder activism and strategic influence.Market Cap: $20 billion | Illumina, Inc. develops, manufactures, and markets life science tools and integrated systems for large-scale analysis of genetic variation and function.
On March 13, 2023, Carl Icahn (1.4%) sent a letter to the shareholders alleging that the management team and the board of directors of the company had wiped out $50bn of value at the world’s biggest genome sequencing company through the “ill-advised” purchase of Grail for $8bn in 2021. He said his investment group would nominate three directors to the board at the upcoming annual shareholding meeting, who he argued could bring a “badly needed dose of sanity” to the boardroom.
On March 15, 2023, Carl C. Icahn released an open letter to the shareholders responding to the obfuscations contained in the company's recent press release and comments to analysts.
On March 24, 2023, Carl C. Icahn issued an open letter to the shareholders, regarding the commencement of an immediate investigation into the massive value destruction caused by the reckless decision by the board of directors to close the GRAIL acquisition over the objections of European antitrust regulators. Source
On March 30, 2023, Carl C. Icahn issued an open letter to the shareholders in response to Illumina’s statement concerning his supposedly “confidential” settlement discussions. Moreover, Icahn sought the replacement of Francis deSouza, CEO and John Thompson, Chairman. Icahn also brought up DeSouza's divorce proceedings in which a judge apparently questioned his credibility and testimony.
On April 3, 2023, Carl C. Icahn released an open letter to the shareholders expressing his dissatisfaction regarding CEO compensation.
On April 5, 2023, Carl C. Icahn released an open letter to the shareholders reiterating his concerns.
On April 11, 2023, Carl C. Icahn issued a presentation pushing for spinoff of the company's Grail liquid biopsy unit and replace CEO. Also he urged the shareholders to vote for his nominees.
On April 21, 2023, Carl C. Icahn released an open letter to the shareholders reiterating his concerns.
On April 27, 2023, Carl C. Icahn released an open letter to the shareholders reiterating his concerns.
On May 1, 2023, Carl C. Icahn released an open letter to the shareholders reiterating his concerns.
On May 8, 2023, Carl C. Icahn released an open letter to the shareholders reiterating his concerns.
On May 15, 2023, Carl C. Icahn released an open letter to the shareholders stating that ISS has recommended that shareholders vote AGAINST sitting Chairman John Thompson and FOR Icahn Nominee Andrew Teno. Also Glass Lewis has recommended that shareholders vote for two of Carl Icahn's nominees to the board
On May 19, 2023, Carl C. Icahn released an open letter to the shareholders reiterating his concerns.
At the AGM held on May 25, 2023, shareholders elected the incumbent directors to the board.
On December 18, 2023, Carl C. Icahn issued an open letter to the shareholders discussing three main goals at the company; (i) Removal of prior Chairman John Thompson and CEO Francis deSouza, which has been accomplished, (ii) Encouraging Illumina to divest GRAIL, which is now happening after a 75% decline in share price, (iii) The goal to remove legacy conflicted directors due to their history of misdeeds and reckless decision-making.
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