Temple-Inland, Inc. (NYSE:TIN) shares moved up $1.71, or 3.32%, to $53.16 today after Carl Icahn announced plans to nominate his own slate of directors at the company's next annual meeting. We first began covering this story back in January, when the activist shareholder stated that shareholders could benefit from a spin-off or divesture of some of the company's business units. According to Icahn's past Schedule 13D filing with the SEC:

"The Reporting Persons acquired their positions in the Shares in the belief that they were undervalued due to, among other things, the conglomerate structure of the Issuer in which various disparate and non-complementary businesses are combined under one corporate umbrella. The Reporting Persons believe that this structure obfuscates the true value of the Issuer's assets and note that various analysts have issued sum of the parts analyses that imply a value for the Shares that is significantly higher than their current market price. The Reporting Persons intend to seek to have conversations with members of the Issuer's management to discuss ideas that management and the Reporting Persons may have to enhance shareholder value, which may include, among other things, the divestiture or spin-off of one or more of the Issuer's component businesses (which may include Guaranty Bank, the corrugated packaging business, timberland holdings, the building products business and/or the real estate division). The Reporting Persons may consider engaging in a proxy contest to attempt to replace one or more members of the Issuer's staggered board of directors with persons nominated by the Reporting Persons, but have as yet made no definite decision to do so."

The decision to conduct a proxy contest to replace members of the company's board came in Friday's Schedule 13D filing with the SEC:

"On February  16,  2007,  the  Reporting  Persons  delivered a letter to the Issuer (the  "Notification  Letter"),  notifying  the Issuer that the  Reporting Persons   intend  to  appear  at  the  2007  annual   meeting  of  the  Issuer's stockholders,  in person or by proxy, to nominate and seek to elect  individuals as members of the board of directors of the Issuer.  A copy of the  Notification Letter is filed herewith as an exhibit and incorporated herein by reference, and any  descriptions  herein of the  Notification  Letter  are  qualified  in their entirety by reference to the Notification Letter."

Carl Icahn has an impressive track record with companies that he is involved with and many shareholders are betting that he can unlock million in value from Temple-Inland. This makes TIN a stock that is definitely worth watching over the next few months!

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