JANA PetSmart Letter

Embed Size (px)

DESCRIPTION

Barry Rosenstein

Citation preview

  • ZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

    KWWSZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

    (;SH[KLELWBEKWP(;+,%,7%

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

  • ZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

    KWWSZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

  • ZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

    KWWSZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

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

  • ZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

    KWWSZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

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

  • ZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

    KWWSZZZVHFJRY$UFKLYHVHGJDUGDWDSH[KLELWBEKWP

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