Activist hedge fund Jana Partners discloses 9.9% stake in PetSmart, plans to talk to retailer's board about changes, including possible sale, steps to improve performance; PetSmart's stock price has fallen around 18% this year
July 3, 2014
– Hedge fund Jana reports stake in PetSmart, wants the pet food retailer to consider a sale
Shares of PetSmart Inc. jumped Thursday after an activist hedge fund reported a stake in the pet food retailer and said it wants PetSmart to consider selling itself.
New York-based Jana Partners disclosed Thursday in a filing to the Securities and Exchange Commission that it has a 9.9 percent stake in PetSmart. Jana said it plans to talk to the retailer's board about changes such as possibly selling the company or moves to improve its performance.
Jana's stake makes it PetSmart's biggest shareholder.
PetSmart did not respond to a request for comment.
Shares of Phoenix-based PetSmart rose $7.40, 12 percent, to $67.21 in morning trading Thursday. Its stock had dropped about 18 percent in 2014. The company reported disappointing revenue in the first quarter due to increasing competition and lower consumer spending. To boost sales, PetSmart has been adding more pet grooming services and fresh pet food. It has more than more than 1,340 stores around the country.
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