On Friday, Carl Icahn slammed Illumina Corp (ILMN.O), alleging its directors wanted additional personal liability insurance before approving the 2021 Grail purchase.
Illumina denied Icahn’s assertions, saying its directors’ insurance arrangements were typically reviewed periodically.
As the $7.1-billion acquisition cost investors billions, activist investor Icahn, who owns 1.4% of Illumina, initiated a proxy campaign against the firm earlier this month to unload Grail.
Illumina closed the transaction over EU antitrust resistance. The US Federal Trade Commission authorized it last September.
In a 2021 regulatory filing, Illumina’s board signed a supplementary insurance arrangement to shield them from Grail transaction claims, including regulatory clearance claims.
“The timing of the agreement (a day before the Grail sale completed) and wording concerning protection against personal responsibility tied to acquisition implies that the BoD understood there were dangers,” Evercore ISI analyst Vijay Kumar said.
Illumina has denied Icahn’s claims and said it would sell Grail if it lost its appeal to the European Commission.
