New York -- Activist investor Jana Partners LLC disclosed it has acquired a 9.9% stake in PetSmart, according to a regulatory filing, and plans to ask the retailer to explore various options, including a sale. Jana, $10 billion firm hedge firm run by Barry Rosenstein, has a reputation for pushing corporate managements to make changes.
Jana Partners said that it expects to have discussions with PetSmart’s board and management regarding a review of strategic alternatives, including exploring a sale. PetSmart needs to improve operating performance and capital allocation and return “significant” capital to shareholders, Jana said. The fund also called on PetSmart to improve disclosures and the composition of management and its board.