Carl Icahn urges Illumina to divest GRAIL as soon as possible
Neilson Barnard
In his latest letter to Illumina (NASDAQ:ILMN) shareholders, investor Carl Icahn said that the company should divest its GRAIL acquisition -- as ordered by the FTC in April -- as soon as possible.
Icahn used the May 4 letter as a way to outline to investors how his three backed board nominees would focus on improving the company if elected. The activist investor and the board are in the midst of a proxy battle.
Icahn noted that his nominees would not be intimidated and would be "prepared to be those voices in the room." He noted that some board members may not have been on board with the GRAIL acquisition or who oppose the leadership of CEO Francis deSouza, but have not spoken up.
He also acknowledged that the board should not be micromanaging the CEO or be "intimately involved" in executing company strategy.
"We believe that the primary jobs of board members are to hire/fire the CEO, hold the CEO and team accountable to a plan, help guide strategy, and prevent companies from avoidable calamity," Icahn wrote.
He also reiterated his call to sack deSouza and focus on the core Illumina (ILMN) business.
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