Imclone Systems Inc. (IMCL) shareholders have elected billionaire investor Carl C. Icahn and two of his assoicates to the board in hopes that it might stabilize the company. Imclone has suffered from a series of blows that might hurt sales and limit its strategic options.
The election brings to four the number of directors connected to Mr. Icahn and gives him control of one-third of the board. Icahn immediately called again to remove ImClone chairman David M. Kies but the board didn't meet the demand. Mr. Kies was re-elected as its chairman after a behind-closed-doors meeting of the board.
Icahn's reasons for wanting Kies gone were outlined in a letter stating that he felt that ImClone has had a "sorry record" under his leadership and that it was time for him to peacefully move on.
The company's founder, Samuel D. Waksal, was sentenced in 2003 for securities fraud, which also included domestic arts celebrity Martha Stewart, and the company has been seeking a permanent replacement CEO.
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