Xerox Corp To Skyrocket At Opening Bell Today

Icahn said Monday that he owns more than 42 million shares of AIG, which would give him a more than 3 percent stake in the NY company. AIG will communicate these actions and provide an update on its continuous and proactive steps to drive shareholder value to the financial community in the near term and in advance of the fourth quarter earnings report. After Xerox posted its first quarterly loss since 2010, the company's chief executive, Ursula Burns, said on October 26 that "undertaking a comprehensive review of structural options for the company's portfolio is the right decision at this time". Along with his disclosure, he also called the company's stock "undervalued" on Monday.

Xerox Corp (NYSE:XRX) shares seems to be heading up this morning, after investory Carl Icahn disclosed his stake in the company.

Icahn has considerable success with spinoffs including the split of ebay Inc and Paypal Holdings Inc, and Manitowoc Company Inc's separation of its crane manufacturing business from its food service business.

Icahn often targets companies that are considering strategic changes. "I like Icahn. He has done well but I just don't know what he can do here", Feinseth said.

The activist investor also revealed that he is considering board representation.

The Wall Street Journal said that Icahn's Securities and Exchange Commission filing show that the activist investor intends to hold discussions with Xerox's management and board. The company said it would separate McMoRan Exploration Co. and Plains Exploration & Production Co. through a sale or spinoff, refocusing on its core mining operations. He has been vocal in his bid for the insurance company to break up in three different entities and has now made his intention clear that he plans on taking his fight one step further by approaching shareholders directly.

Though American International Group was again quick to react to Icahn's latest press release, see AIG's statement here, management is clearly feeling the pressure ratcheting up.