Lamb Weston shareholders unhappy with management, Jana says, hinting at proxy fight

NEW YORK (Reuters) - Lamb Weston shareholders love the French fry maker's products but are unhappy with management, activist investor Jana Partners told the company's board on Monday, signaling that it may launch a board fight later this year.

The investment firm, which owns more than 5% of the roughly $9 billion company, polled Lamb Weston's top 70 shareholders, asking them to rate the company's management team, governance, operational execution and product quality on a scale of 1 to 10, with 10 being the strongest.

"Ratings for nearly all key areas including leadership, operational execution and capital allocation were extremely weak, product quality stood out in sharp contrast and was nearly a 10," Jana Partners' managing partner wrote to the board. The scores highlight "how severely the Company has squandered its leading market position and reputation," the letter continued.

The letter comes roughly one month after Lamb Weston replaced its chief executive officer after the company reported weaker earnings and cut its outlook, pushing its share price down. Over the last 52 weeks, shares have fallen 41%.

The company did not immediately respond to a request for comment.

Jana previously said it wanted the company to consider a sale and on Monday said it is "committed to providing shareholders with an alternative to the status quo at the company's" 2025 annual meeting.

(Reporting by Svea Herbst-Bayliss in New York; Editing by Matthew Lewis)

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