PetSmart Up On Report It Will Go On Block

PetSmart, Inc.

shares were spiking Tuesday near the market close on a report that the company will explore a potential sale. Reuters said several shareholders led by activist investor Jana Partners LLC have succeeded in efforts pushing the pet supply retailer to sell itself. PetSmart may announce plans to explore strategic alternatives as soon as this week, according to an unnamed source cited by Reuters. Jana, led by activist investor Barry Rosenstein, has held an 9.8 percent stake in PetSmart since last month when it called on Petsmart to review strategic alternatives, including a sale. It sent a similar letter to PetSmart last week and on Monday disclosed it had received an anonymously delivered internal PetSmart document that outlined how it planned to fend off Jana. PetSmart traded recently at $69.91 a share, up more than 2 percent.