FedEx Corporation (NYSE:FDX) is having a superb day today, stock is up 6.8 percent on wild rumors that this could be the one that Bill Ackman is buying. In short, Bill Ackman expressed his intention to open a single stock fund that will invest in a company he described as “simple, predictable, and free-cash-flow-generative and enjoys high barriers to entry.” Forward to the next day, and all of a sudden FedEx starts gaining big, fueling rumors that Ackman could be buying the mail shipping company.

Ackman Speculation Fuels FedEx Gains

Wild Speculation on Buying Fedex

This is purely wild speculation and there is no confirmation at all on whether Ackman’s Pershing Square has any intention to buy FedEx Corporation (NYSE:FDX). Both FedEx and Ackman have declined to confirm. The rumor mill of Wall Street was put in gear with a not-so-innocent tweet by Street Insider. SI speculated a connection between the +6 percent trading gain of FedEx and Ackman’s new target company.

A 5 percent stake in FedEx Corporation (NYSE:FDX) would be equal to 15,850,000 shares, a position that would have cost $1.56 billion as per yesterday’s closing price of $98.8.

Bill Ackman’s Secret Investment

Bill Ackman communicated to his clients that Pershing Square would raise money over the next 10 days to acquire a 5 percent stake in an unnamed company. Just a day later we have one candidate to fill this mysterious stock that Ackman is buying, and it is very likely that new contenders for this coveted position will come up over the next few days.

FedEx has largely steered clear of activist hedge funds over the past years. The benign holders of FedEx Corporation (NYSE:FDX) have been Southeastern Asset Management, Glenhill Advisors and smaller stakes from Tudor Investment, Balyasny Asset Management, Hutchin Hill, Millenium Management and AQR Capital. Bill Ackman, however is not going to be a silent spectator in whatever company he acquires, he plans to get his activist guns ready for battle.

Carl Icahn could be buying FedEx Corporation (NYSE:FDX), for all we know. After all it has been a while since he bought 10 percent of a new company, and all the money lying around in Icahn Enterprises LP (NASDAQ:IEP) could catch dust if left unattended.

The stock made its largest intraday gain since Dec 2011 today. FedEx is now up 7.3 percent.