Cooper (COO) is under pressure from activist investor Jana Partners, which has built a stake in the company and is pushing for strategic alternatives, including a potential merger of its contact-lens business with Bausch + Lomb (BLCO), the Wall Street Journal reported Sunday, citing people familiar with the matter.

According to the report, Jana believes Cooper's two core businesses-contact lenses and women's health-are unrelated and lack synergies, resulting in weak capital allocation and limited shareholder value.

The firm sees potential buyers for both units, the Wall Street Journal said.

The proposed combination already has support from Bausch + Lomb Chief Executive Brent Saunders, who told the Wall Street Journal that "a potential combination with Cooper would strengthen competition and create a more scaled company in the contact-lens segment."

Jana also plans to push for broader operational and financial changes at Cooper to lift its share price, the people told the media outlet.

It added that the size of Jana's stake has not been disclosed.

Shares of Cooper were up 5% in Monday's premarket activity.

Cooper did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)