Xerox shares turned lower Tuesday, a day after activist investor Carl Icahn disclosed a new 7.1 percent stake in what he called an "undervalued" company.

Xerox stock had risen more than 7 percent in after-hours trading Monday. The stock has fallen 23 percent this year.



In trading Tuesday morning, it was down 2.7 percent.

Earlier Monday, Icahn said in a Securities and Exchange Commission filing he would discuss operational changes and strategic alternatives with Xerox management. He also mentioned possible board representation.



The stake makes Icahn the business and document services company's second-largest shareholder, according to FactSet data cited by Dow Jones.

