In a SEC regulatory filing recently published, the activist investment group Jana Partners stated that it had opened a new tab, developed a new position in Lamb Weston, and might pressure the French fry manufacturer to think about selling itself.
Jana said it wanted to see a strategic review where the firm and lenders would examine capital spending, operating problems, and share-repurchase strategy. Jana owns 5% of the Eagle, Idaho-based company, according to Reuters.
The hedge fund also hinted that it would run for board positions at the USD11bn corporation.
Lamb Weston’s stock rose 11% to USD78.78 after news broke of Jana’s ownership. In January, the stock fell 26 percent.
According to the filing, Jana is collaborating on the investment with Continental Grain, a privately held corporation that owns and runs agribusiness and food enterprises. Additionally, it is collaborating with Timothy McLevish, the former executive chairman of Lamb Weston. The business acknowledged that it was aware of Jana and Continental Grain’s regulatory filings.