1 Min Read
(Reuters) - Outerwall Inc said on Monday that the Redbox video rental kiosks owner would explore strategic and financial alternatives.
The company's shares rose nearly 15 percent to $39.50 in extended trading on Monday.
The company's decision comes nearly a month after Outerwall's second-largest shareholder, Engaged Capital Llc, urged the company to explore strategic options, including taking it private.
The hedge fund, which has a 14.6 percent stake in Outerwall, said the company should halt its share repurchase program and sell or shut down its phone recycling business ecoATM, among other options.
Outerwall has retained Morgan Stanley & Co Llc as its financial adviser, and Perkins Coie Llp as its legal adviser.
The company has also doubled its quarterly dividend to 60 cents per share.
Reporting by Anya George Tharakan in Bengaluru; Editing by Shounak Dasgupta