Rosenstein Buys 9.9% PetSmart Stake; Will Seek 'Strategic Review'

PetSmart Inc.

shares jumped more than 15 percent in pre-market trading on news that activist investor Barry Rosenstein had acquired a 9.9 percent stake and will seek a review of strategic alternatives. Rosenstein said it will hold discussions with PetSmart's board concerning a review of strategic alternatives including exploring a sale of PetSmart. Janna paid $341 million to acquire 9. 8 million shares, including options to purchase 4.7 million shares, according to a filing with the Securities and Exchange Commission. PetSmart has missed Wall Street's earnings expectations in several recent quarters, and has said it expects the remainder of fiscal 2014 will feature flat comparable-store sales and total sales growth in the low-single digits. PetSmart changed hands recently at $68.88, up 15.49 percent.