Icahn poised to win at least one seat on Illumina's board -sources

Iep Invest NV

25/05/2023 02:07

(Adds background from fifth paragraph with details about
Icahn's position on Illumina and recommendations of proxy
advisers)
    By Svea Herbst-Bayliss and Greg Roumeliotis
       NEW YORK, May 24 (Reuters) - Activist investor Carl
Icahn is set to win enough Illumina Inc  ILMN.O  shareholder
support to install at least one of his three nominees to the
gene sequencing machine maker's board, two people familiar with
the matter said on Wednesday.
    A preliminary vote tally shows that Icahn nominee Andrew
Teno has won enough shareholder support to get on Illumina's
board, the sources said.
    The sources added that the tally has not been finalised and
Illumina shareholders can change their votes until the company's
annual shareholder meeting starts on Thursday.
    The sources asked not to be identified because the matter is
confidential. Icahn and Illumina spokespeople did not
immediately respond to requests for comment.
    Icahn's challenge against Illumina, whose market value of
$33 billion makes it this year's biggest board fight, offers the
87-year-old corporate raider a chance to reassert his investment
acumen. 
    This month, he faced his own investor challenge after short
seller Hindenburg Research issued a report saying his investment
firm Icahn Enterprises LP  IEP.O  artificially inflated its
dividend yield and the value of its assets.
        Icahn, who owns 1.4% of Illumina, put forward three
director candidates, a move that could result in the ouster of
Chief Executive Officer Francis deSouza and Chairman John
Thompson from Illumina's nine-member board.
    The investor has accused Illumina's board of poor oversight,
especially with regards to the company's $7.1 billion
acquisition of cancer test maker Grail. 
        Illumina completed the deal despite opposition from U.S.
and European antitrust regulators, who are now trying to force
it to unwind it. Icahn has blamed the Grail deal for Illumina
losing $50 billion in market value. 
    Earlier this month, proxy advisory firm Institutional
Shareholder Services recommended Illumina shareholders back
Teno, arguing he would be an adequate replacement for Thompson.
        Two days earlier, proxy adviser Glass Lewis said
Illumina shareholders should vote for two of Carl Icahn's
nominees to replace deSouza and Thompson.

 (Reporting by Svea Herbst-Bayliss and Greg Roumeliotis in New
York; Editing by Paritosh Bansal and Christopher Cushing)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))