CORRECTED-Activist Starboard builds stake in Lamb Weston, urges quicker turnaround, WSJ reports (March 8)
March 8 (Reuters) - Activist investor Starboard Value has built a sizable stake in Lamb Weston LW.N and is urging the french-fry maker to speed up operational improvements and cost cuts to help lift its stock price, the Wall Street Journal said on Sunday, citing sources.
Starboard has become one of the largest shareholders in Lamb Weston, according to the WSJ report, though the exact size of its stake was not immediately known.
Lamb Weston, with a market capitalization of $6.34 billion, supplies potato sides and appetizers to fast-food chains such as McDonald's MCD.N and Yum Brands YUM.N.
Starboard Value has been an investor for a while and recently saw an opportunity to scoop up even more shares with the business looking undervalued, the report added.
Lamb Weston values "ongoing and constructive dialogue" with its shareholders, a representative for the company told Reuters in an emailed statement.
The company reached a settlement with Jana Partners last year, giving Jana a big presence on the French-fry maker's board.
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