ConAgra Foods Inc. to Add Two Board Members on Activist Jana Partners LLC’s Insistence
In a statement on Wednesday, ConAgra Foods Inc. mentioned that it will add two more directors to its present twelve member board.
The new members to join the board will be Brad Alford, who an ex-chief executive officer of Nestle USA, and Tim McLevish, who is a veteran of Walgreens Boots Alliance Inc. and Kraft Food.
Jana Partners LLC, the second largest share holder in the company insisted on the changes after it disclosed its 7.2 percent stake in ConAgra Foods Inc. in June.
The new members will join the food processing company's board in by July 22.
Jana sought the changes in the company's management to address "persistent underperformance." ConAgra Foods Inc. has failed to perform as expected since its acquisition of the U.S. private label company, RalCorp in 2013 in a $5 billion deal. Facing pressure from the activist investor, last week ConAgra said that it planned to give up the private label business in order to concentrate on the consumer foods segment which has a faster-growing market.
ConAgra shares dropped 1.8 percent to $44.65 by the end of the day in New York trading. The twenty three percent which its shares have gained in the current year have come mostly following Jana's disclosure of its stake.
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