(Adds details, background)
April 12 Redbox video rental kiosks owner
Outerwall Inc said it had agreed with activist hedge
fund Engaged Capital LLC to add three independent directors to
Outerwall said on Tuesday that it would appoint Jeffrey
Brown, the chief executive of Brown Equity Partners LLC, to its
board with immediate effect and two other directors would be
named by Aug. 1.
Brown's appointment expands Outerwall's board to eight
directors, seven of whom are independent. The board will have a
maximum of nine members after the addition of the other two
directors, the company said.
Engaged Capital, which holds about 14.6 percent stake in
Outerwall, had urged the company in February to consider
strategic alternatives, including going private.
The hedge fund had said then that the company's board had
"squandered" about $1.2 billion of shareholder capital over the
past four years.
Outerwall, bowing to pressure from Engaged Capital, said in
March it would explore strategic and financial options.
Last year, the hedge fund had also pressured weight loss
products maker Medifast Inc into adding Brown to its
Outerwall, earlier known as Coinstar, generates most of its
revenue from the Redbox business it acquired in 2008.
The company's shares closed at $39.04 on Monday. Up to
Monday's close, the stock had fallen about 40 percent in the
past 12 months.
(Reporting by Anya George Tharakan in Bengaluru; Editing by