Activist Jana Partners has called for “significant” leadership changes at Lamb Weston Holdings, suggesting the company explore alternatives, including a potential sale, if its demands aren’t met, according to a report by Bloomberg.
In a letter, Jana, which revealed its more than 5% stake in the french-fry supplier in October, expressed frustration over months of “involvement and engagement” without any response from the board.
The report, citing the letter, outlines Jana’s criticisms of the board, including issues such as persistent operational missteps, excessive costs, poor capital allocation, and concerns over the use and disclosure of the company’s aviation assets.
Following the letter, Lamb Weston’s shares rose 2.8%, although the stock has fallen about 25% this year due to two consecutive quarters of declining sales.
Meanwhile, a deal may be on the horizon, with reports that cereal maker Post Holdings is collaborating with bankers to explore a possible transaction with Lamb Weston.
