NEW YORK, Aug 29 (Reuters) - Sachem Head Capital

Management nominated four directors to the board of Performance

Food Group ( PFGC ), two people familiar with the matter said on

Friday, at a time the hedge fund is urging the food distributor

to consider merging with a rival.

The hedge fund, run by Scott Ferguson, privately nominated

the director candidates shortly before the deadline earlier this

month. The sources did not disclose the candidates' names.

Performance Food Group ( PFGC ) currently has 12 directors.

Sachem Head has been pushing Performance Food ( PFGC ) to explore

ways to improve its profitability and would like it to consider

a merger with US Foods Holding ( USFD ), said the sources who

were not authorized to discuss the private matter publicly.

US Foods ( USFD ) confirmed that it approached its rival about a

possible combination.

Performance Food ( PFGC ) CEO George Holm told analysts on the

company's earnings call that the board determined there was "no

basis" to engage with US Foods ( USFD ). The "board has a track record of

regularly evaluating a range of potential paths to generate

shareholder value," he added.

Sachem Head has considerable experience in the food

industry, having run a board fight and ultimately settled for

seats at US Foods ( USFD ) in 2022. Ferguson was a US Foods ( USFD ) director

until February 2024.

The hedge fund began building its stake in Performance Food ( PFGC )

recently. The investment was not listed on its most recent

regulatory filing.

Ferguson could not be reached and a Sachem Head

representative declined to comment.

Performance Food ( PFGC ) declined to comment.

Bloomberg first reported that Sachem Head nominated

directors, without citing the number of seats the hedge fund

asked to fill on the company's board.