This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PetSmart Shops Assets Amid Activist Pressure

NEW YORK (The Deal) -- PetSmart Inc. (PETM)  the self-proclaimed largest retailer of pet products, said late Tuesday it will explore strategic alternatives including a sale.

Advising the pet retailer on its strategic review is JPMorganSecurities (JPM - Get Report) and Wachtell Lipton Rosen & Katz.

"Notwithstanding our confidence in the Company's future prospects, following a detailed Board review of the Company over the last several months, including many constructive conversations with a wide range of shareholders, we have decided to explore options to maximize shareholder value, including a potential sale of the Company," said Gregory Josefowicz, PetSmart's chairman, in a statement.

The Phoenix-based company has been under pressure from activist investor Jana Partners since early July when the hedge fund revealed a 9.9% stake in a regulatory filing, saying that it intended to discuss alternatives with management including a sale.

Jana has received backing from asset manager Longview Asset Management LLC, which not only supported the sale idea, but said that in some situations it might even consider rolling its 9% stake in the retailer into a leveraged buyout. Since that time, Jana has consistently been barking for an auction of PetSmart.

On Monday, the hedge fund said, in a regulatory filing it had received an "anonymous, unsolicited package," that included business plans related to the company's third and fourth quarter results, plus a cover letter noting the company had "missed internal projections." Jana urged management to share the information with shareholders.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
JPM $66.83 0.08%
PETM $82.98 0.04%
AAPL $118.25 -0.53%
FB $105.69 -0.05%
GOOG $749.58 0.17%


Chart of I:DJI
DOW 17,833.64 +21.45 0.12%
S&P 500 2,091.43 +2.29 0.11%
NASDAQ 5,120.72 +17.9120 0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs