- Billionaire activist Carl Icahn is preparing a proxy fight at Illumina Inc ILMN, saying the company went ahead with the controversial acquisition of Grail Inc despite opposition from regulators, costing shareholders $50 billion.
- According to the letter viewed by Wall Street Journal, the activist plans to nominate three people to the company's board.
- Mr. Icahn accuses Illumina of overpaying for a business that made "exactly zero dollars in revenue," then closing the deal despite regulatory hiccups.
- Related: European Commission Says No To Illumina-Grail Deal - What's Next?
- He writes that holding on to Grail is costing Illumina $800 million annually, and that it faces a significant tax bill if ultimately forced to divest it.
- Illumina was valued at over $70 billion in 2021, but currently, the company has lost over 50% of its value to around $30 billion as the Grail deal remains in limbo while the company faces heightened competition from lower-cost rivals.
- Also Read: Illumina Shares Tank After Annual Guidance Fall Short Of Expectations.
- "We are convinced that at least three shareholder representatives are needed on Illumina's board to attempt to end this insanity now before the reckless decision-making escalates into a no-return situation," Mr. Icahn writes in the letter.
- Illumina said it recommends its shareholders vote against Mr. Icahn's nominees.
- "Illumina has a diverse, experienced board comprised of directors who bring a range of perspectives to the company and represent the interests of its stockholders," the company said.
- Price Action: ILMN shares are up 8.53% at $210.55 during the premarket session on the last check Monday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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