Found A note with the Title <Missing Name>.
It was found during the Oblivion: Shivering Isles DLC Quests
X Box 360 Version
You can't equip it, you can drop it.
however beware if and when you drop this item a Elder Gnarl will appear.
However it will not attack you unless provoked at witch time the guards will aid you in attacking it.
(Tested by droping it in front of the Imperial City Palace and Attacking it/ let it go)