PetSmart investor Longview joins Java in calling for sale

New York – PetSmart investor Longview Asset Management LLC, Chicago, has joined activist investor Jana Partners in calling for the retail chain to consider a sale. Meanwhile, PetSmart said it was reviewing ways to return more cash to shareholders.

In a regulatory filing, PetSmart disclosed that its board of directors is considering changes to the company’s capital structure in order to return more capital to shareholders. The disclosure follows a July 3 announcement by Jana Partners that it holds a 9.9% stake in PetSmart and plans to ask the retailer to explore various options, including a sale.

PetSmart has not specifically said it will consider a sale, but previously said that it welcomes communication with shareholders and that its board and management are committed to creating value for shareholders. Jana, a $10 billion firm hedge firm run by Barry Rosenstein, has a reputation for pushing corporate managements to make changes

"The evaluation is ongoing and is consistent with the company’s commitment to driving shareholder value,” PetSmart stated in the disclosure. There is no assurance any new initiatives will be undertaken, and if so, the amount and timing of any such initiatives," PetSmart stated.

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