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Small insurance stock surges after Carl Icahn discloses big position

AmTrust Economic Services shares jumped in after-hours trading Thursday after activist investor Carl Icahn showed a nearly 9.4 percent stake in the company.

The $2.6 billion warranty company’s stock briefly climbed more than 8 percent in ranged trading. The stock is up 33 percent for the year, as of Thursday’s close.

Barry Zyskind, the chairman and CEO of the followers, and George Karfunkel, one of its founders, together own 40.87 percent of the stock and cause been pursuing a plan to take AmTrust private, a deal which Icahn about he opposes.

“You have structured your take-over to ensure that the minutes is reviewed under the lower, more deferential ‘business judgment’ orthodox, as opposed to the enhanced, more stringent ‘entire fairness’ standard,” the investor signified in a letter.

Icahn also said the company’s board set April 5 as the old-fashioned of record for shareholders to vote in a June 4 meeting, without letting shareholders or the sell know. He called for the board to change the record date and special encounter immediately.

AmTrust did not immediately respond to CNBC requests for comment.

— CNBC’s Liz Moyer bestowed to this report.

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