Target Corporation (NYSE: TGT) shares rebounded after billionaire activist Bill Ackman announced that he would hold a conference on Wednesday to recommend a course of action for the troubled retailer. The hedge fund manager promises that the course of action will build long-term value for Target shareholders with a focus on retail, real estate, fixed income and credit. Ackman is already well under water on his investment in the retail, having purchased the majority of his ~10% stake before the economic downturn.

With consumer confidence at an all-time low, more trouble brewing in the housing markets, and lower estimates on the horizon, many investors are wondering how Target can pull itself out of a huge mess. However, Ackman has already noted Target's unique real estate position as well as its valuable credit portfolio (which may be experiencing problems now, but not nearly as bad as some believe). A plan to boost these assets while reducing outstanding shares could be the formula needed to help Target succeed.

Pershing Square's Bill Ackman will present to the public at 1:30PM tomorrow afternoon at the AXA Equitable Auditorium 787 in New York, New York. The presentation will be based solely on publicly available information, as well as assumptions, estimates and projections of Pershing Square. Due to available seating, attendees are encouraged to register in advance at www.visualwebcaster.com/pstgt, but may also do so at 12:30PM on the day of the event.

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International Shipholding Corporation (NYSE: ISH) shares rallied today after receiving a letter from a large shareholder. Liberty disclosed an increased stake in the firm and requested an immediate update on the status of its offer to purchase the company for $25.27 per share in cash.

Here is a copy of the letter:

It has been more than four months since my June meeting with Niels M. Johnsen, when I first raised with him the possibility of completing a business combination transaction between Liberty and International Shipholding (ISH). It has also been more than seven weeks since we delivered to you a written proposal to acquire ISH for $25.75 per share in cash, and six weeks since you announced the formation of a special committee of the Board to evaluate our proposal. We were therefore surprised to learn that only recently did you finally appoint an independent financial advisor to assist the special committee in its review of our proposal. This appointment, and the review process that the committee is apparently only now commencing, frankly should have occurred months ago. Your dilatory tactics, including your continuing refusal to meet with us, only raise questions regarding the ISH Board’s commitment to maximizing value for all its shareholders.

We have waited for weeks for either the ISH Board, management or their advisors to contact us to commence our due diligence process and negotiation of definitive merger documentation. In the interim, the global economic turmoil that has engulfed world markets has accelerated, negatively affecting our industry as well as the terms of any financing we may incur to complete the transaction. Notwithstanding the foregoing, we are still committed to acquiring ISH. This is evidenced by the fact that, despite recent events, we have increased our position in the company since we made our offer public. As of today we control more than 9% of ISH’s outstanding shares.

I have instructed our counsel to deliver today to your counsel a form of confidentiality agreement that we are prepared to execute in order to immediately move forward with due diligence. Your fiduciary duties to your shareholders require no less. Our management and advisors will also be available at any time to assist you and your advisors. Any further delay on your part will be an absolute disservice to your shareholders, particularly the disinterested shareholders you are legally obligated to represent as independent directors.

Despite your actions to date, we still hope to engage in a cooperative process that allows us to maximize value for our respective shareholders. We would appreciate hearing from you in a timely manner.

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Carl Icahn may cause big waves in huge corporations, but he failed to impress investors in Telik (NDAQ: TELK) today. The stock dropped 4% in late trading despite the fact that the activist investor disclosed an 8.15% stake in the firm. Icahn is known for pushing for change in the companies that he targets and some are speculating that his investment in this company may be to sell a key technology or patent to another company or perhaps one of his affiliates.

Telik shares have dropped sharply since it received a deficiency letter from the Nasdaq that for the last 30 consecutive business days the bid price of Telik's common stock has been below the required $1.00 per share to continue appearing on the exchange. However, Telik's drugs have seen better results with one of its small molecule proteasome inhibitors meeting preclinical milestones by demonstrating anticancer activity in preclinical models of human leukemia.

Telik, Inc. is a biopharmaceutical company working to discover, develop and commercialize small molecule drugs to treat diseases. The Company discovered its product candidates using its drug discovery technology, Target-Related Affinity Profiling (TRAP). As of December 31, 2007, Telik has not obtained regulatory approval for the commercial sale of any products, and has not received any revenue from the commercial sale of products. Telik discovered all of its product candidates using its technology, TRAP.

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