Investment firm Jana Partners has acquired 7.2% stake in American packaged foods company ConAgra Foods for an undisclosed amount.
In addition, the hedge fund is to nominate new directors to ConAgra's board in order to help the food firm to overcome operating performance challenges it has been facing since the acquisition of RalCorp in 2013.
ConAgra Foods acquired private label food products manufacturer Ralcorp for $6.8bn. Ralcorp's cut-price deals with retailers before the acquisition resulted in ConAgra's poor performance as the company failed to meet forecasts and scrapped long-term goals.
Jana would nominate its founder Barry Rosenstein, former Nestle USA CEO Brad Alford as well as Diane Dietz as ConAgra's new board members.
The new board is anticipated to help ConAgra to review its strategy, address operational performance and costs and optimize capital structure.
ConAgra extended the deadline to nominate board directors from 21 June to 8 July.
ConAgra Foods produces a wide range of food products including cooking oil, frozen dinners, hot cocoa, hot dogs, peanut butter and many others under Hunt's, Healthy Choice, Marie Callender's, and Slim Jim brands among others.
