Coinstar Defends Plan to Improve Value

On Friday, the Shamrock Activist Value Fund said in a Securities and Exchange Commission filing that a change in Coinstar's board composition is needed to maximize shareholder value.

On Monday, Coinstar said its strategic plan has more than quadrupled the company's revenue over the past five years to an expected $800 million to $875 million in 2008. The company expects to achieve $1 billion in revenues by 2010.

In addition, Coinstar said its stock price has more than doubled from $12 in mid-2003 to $30.17 on Friday. The stock was around $35 in April 2002.

Coinstar also noted that its board approved several changes on Thursday to enhance corporate governance.

Coinstar implemented a majority voting standard for uncontested elections, terminated its stockholder rights plan and increased the stock ownership requirements for non-employee directors.

In the SEC filing on Friday, Coinstar said it was "encouraged" by the changes.

Coinstar also questioned the independence and retail experience of Shamrock's nominees, which all work for the shareholder.

"Coinstar's board and management remain intently focused on continuing to act in the best interests of all stockholders and executing on the company's strategic plan, which has created, and is expected to continue creating, significant value for all Coinstar stockholders," Coinstar said.