Sept 16 (Reuters) - Performance Food Group ( PFGC ) said

on Tuesday it has agreed to share confidential information with

peer US Foods Holding ( USFD ), as the two companies explore a

potential deal.

Shares of Performance Food ( PFGC ) were up about 3% in

premarket trading.

Reuters reported last month that hedge fund Sachem Head has

been pushing PFG to explore ways to improve its profitability

and would like the company to consider a merger with US Foods ( USFD ).

Sachem also nominated four directors to the food

distributor's board, Reuters had reported, citing sources.

"The PFG Board, along with its independent financial and

legal advisors, concluded that there was sufficient basis to

begin information sharing," Performance Food ( PFGC ) said in a statement

on Tuesday.

The company, which serves ingredients and packaged food

products to restaurants and retailers, attracted takeover

interest from US Foods ( USFD ) in July, Bloomberg had reported.

US Foods ( USFD ) later confirmed that it had approached its rival

about a possible combination.

US Foods ( USFD ), which is valued at roughly $18 billion, said on

Tuesday it was "pleased with PFG's decision" to engage.

However, PFG said the latest agreement between the two

companies does not mean it will result in any transaction

proposal, or any assurance as to its outcome or timing.

PFG has a market capitalization of $16.3 billion,

according to data compiled by LSEG.