July 7 Longview Asset Management LLC became the
latest PetSmart Inc shareholder calling for the
company's board to consider selling itself, even as the retailer
said on Monday it was reviewing potential changes in its capital
The pressure from Longview comes days after activist hedge
fund Jana Partners LLC, PetSmart's largest shareholder with a
9.9 percent stake, said it planned to ask the pet products
retailer to explore a sale.
Longview Asset Management, which also holds 9 percent of
PetSmart's shares, said it had previously discussed its
"concerns" with the company. (1.usa.gov/1thoqGp)
The company said on Monday it was evaluating changes, with a
focus on returning capital to shareholders, after reporting its
first drop in quarterly same store sales in seven years for the
quarter ended May 4.
PetSmart's sales have suffered due to its aging store base
and growing competition from online retailers.
Brokerage Morgan Stanley upgraded the stock to
"equal-weight" from "underweight" on Monday, saying a potential
merger with privately held Petco represented "the greatest
source of upside."
(Reporting by Ramkumar Iyer in Bangalore; Editing by Lisa