Rumors of Bill Ackman, a hedge fund operator, supposedly raising money to buy shares in FedEx were false, say analysts. According to analysts, FedEx did not meet Ackman's criteria of a company that was "simple, predictable, and free-cash-flow-generative and enjoys high barriers to entry."

Analyst at Cowen and Co., Helane Becker, said that FedEx did not fit into Ackman's criteria. The criteria was discussed in a letter on Monday soliciting investors.

Meanwhile, analysts at Wells Fargo were uncertain of the hedge fund manager being able to spin off different pieces of FedEx for cash. In addition, according to Forbes', analysts at JP Morgan though that Ackman would be unsuccessful at changing FedEx's management to his wishes.

Because of the rumors, FedEx stocks rose on Tuesday. However, now that the rumor has been dispelled, stocks of the Memphis-based company closed at US$103 per share, a drop of US$0.15 from Tuesday's closing.

According to the rumor, Pershing Square Capital Management of New York, Ackman's fund, solicited US$1 billion from investors. The funds raised from investors would supposedly be used to buy stocks of two companies, which identity were not disclosed.