JANA Partners Goes Activist on ConAgra Foods ~ market folly

Monday, June 22, 2015

JANA Partners Goes Activist on ConAgra Foods

Barry Rosenstein's activist hedge fund JANA Partners has filed a 13D on shares of ConAgra Foods (CAG).  Per the filing, JANA now owns 7.2% of the company with over 30.86 million shares.

This is a newly disclosed stake for the fund as they did not own any shares at the end of Q1.  JANA's position includes options to purchase 19 million shares.  They bought July 2015 $33 and $34 calls and August '15 $34 calls.

The filing indicates that JANA "believes that the Issuer has significantly underperformed in shareholder value creation" and singled out the acquisition of Ralcorp.

JANA is prepared to nominate 3 members to the board: Rosenstein, Mr. Lawrence (former CFO of Unilever and General Mills), and Ms. Dietz (former CMO of Safeway).  JANA was out buying shares in April, May, and June at prices between $36.09 and 38.99

For more from this firm, head to Barry Rosenstein's recent appearance on Wall Street Week.

Per Google Finance, ConAgra Foods is a "packaged food company. The Company provides branded and private branded food in households, as well as commercial foods business serving restaurants and foodservice operations. The Company’s brands include Banquet, Chef Boyardee, Egg Beaters, Healthy Choice, Hebrew National, Hunt's, Marie Callender's, Orville Redenbacher's, PAM, Peter Pan, Reddi-wip, Slim Jim and Snack Pack, among others."

blog comments powered by Disqus