PetSmart Unlikely to Go Private as Firms Said to Prep Final Bids

Several private-equity firms have reportedly been invited to the final round of bidding for PetSmart, just a few months after the pet supplies retailer came under pressure by shareholders to explore a sale. Firms including Apollo Global Management and KKR have been asked to submit second-round bids by December 4 and meet with PetSmart's management, according to a report by the Wall Street Journal. Bank of America Merrill Lynch analyst Denise Chai said in a recent note that PetSmart going private is unlikely as Petco, which she believes is the most natural buyer for PetSmart, is reportedly not allowed to participate in the auction. Morningstar analyst Liang Fong is also not convinced PetSmart will go private, as she believes that 'management would prefer to operate PetSmart independently.'