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Thursday, July 3, 2014

Hedge fund Jana Partners to seek PetSmart sale, shares up, (NASDAQ: PETM)

Activist hedge fund Jana Partners LLC said it planned to ask PetSmart Inc to explore a sale, underlining troubles at the pet products retailer.PetSmart shares rose as much as 15 percent on Thursday.Jana Partners reported a 9.9 percent stake in PetSmart, making it the company's largest shareholder. ("PetSmart's customer traffic has been declining due to the impact of its aging store base and growing e-commerce competition, which management was late to address," Raymond James analyst Dan Wewer wrote in a note.

PetSmart, Inc. supplies products, services and solutions for the lifetime needs of pets. Shares of PETM traded higher by 12.1% or $7.239/share to $67.04. In the past year, the shares have traded as low as $55.00 and as high as $77.32. On average, 2337020 shares of PETM exchange hands on a given day and today's volume is recorded at 14233246.