Activist investor Jana Partners builds 5% stake in Lamb Weston, WSJ reports

(Reuters) - Activist investor Jana Partners has built a stake of about 5% in frozen fries supplier Lamb Weston, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Shares of Lamb Weston were up about 9% in premarket trading.

Jana plans to nudge Lamb Weston in exploring a sale and wants the company to improve its operations and capital-allocation strategy, according to the report.

The hedge fund could nominate directors to the company's board, the report said, adding that Jana is working with industry executives including Lamb Weston's former executive chairman, Timothy McLevish.

Lamb Weston did not immediately respond to a Reuters request for comment.

Earlier this month, Lamb Weston cut its annual profit forecast and announced job cuts amid softer spending across restaurants and heightened competition in international markets.

Lamb Weston's stock has been down about 34% so far this year, as of last close.

Source: Investing.com