© Reuters. FILE PHOTO: A sign at the front entrance of Illumina’s global headquarters in San Diego, California, US, November 28, 2022. REUTERS/Mike Blake
(Reuters) – The chief executive of Illumina (NASDAQ: NASDAQ) resigned on Sunday, the maker of genetic sequencing machines said in a statement, ending a battle with activist investor Carl Icahn in which the company’s chairman left earlier this year.
Illumina said it has appointed senior vice president and general counsel Charles Dadswell as interim CEO. It added that D’Souza would remain in an advisory position until July 31.
Icahn sought deSouza’s removal as an integral part of his effort to force the company to disclose its $7.1 billion acquisition of cancer diagnostic test maker Grail.
US and European antitrust regulators ordered the company to cancel the deal, but Illumina went to court in both regions to fight the move.
Icahn said in a tweet that he is happy with the recent changes to Illumina and considers it a “very positive event”.
He added, “The new additions to the Board of Directors, the transition of the CEO, as well as the change of the Chairman of the Board of Directors are important positive factors that should bring value to all stakeholders and human health.”
The proxy battle began in March and ended with a vote in May in which Icahn won enough shareholder support to oust the chairman, John Thompson, and install his nominee, Andrew Tenno. Icahn said he wants Jay Flatley, the former CEO of Illumina, back.
“My belief in the potential life-saving potential of GRAIL technology and the benefits of integrating it with Illumina remains unwavering,” DeSouza said in a message to employees on LinkedIn.
D’Souza’s departure was not a foregone conclusion. He received more than twice as many shareholder votes as his rival in the proxy vote, which could have given him enough legitimacy to hang on.
For example, Vicki Hollub remains CEO of Occidental Petroleum (NYSE:) after the company struck a deal with Icahn over board seats in 2020 and after Icahn cashed in two years later.
There is still a history of CEOs leaving. Unilever (NYSE: Plc) CEO Alan Job announced his plans to leave three months after hedge fund manager Nelson Peltz joined the consumer giant’s board last year.
Illumina earlier this month filed an appeal against an order from the US Federal Trade Commission (FTC) requiring it to pull Grail over competition concerns.
(This story has been reworked to correct DeSouza to deSouza throughout)