Coinstar urges shareholders to vote in favor of its nominees

BELLEVUE, Wash.—Coinstar Inc. on Thursday urged shareholders to vote in favor of its independent board nominees and reject the nominees of a dissident investor at the coin-machine operator's annual meeting on June 3.

In a letter to shareholders, Coinstar said its recently reported first-quarter results demonstrate the board and management's ability "to deliver superior operational and financial performance."

Last Thursday, Coinstar reported profit and sales growth above Wall Street's expectations. The company also raised its full-year guidance. Shares have since jumped 15 percent.

Additionally, Coinstar urged shareholders to reject the nominees of dissident hedge fund Shamrock Activist Value Fund, which announced plans last month to nominate three directors.

Shamrock, which owns a 13.4 percent stake, has said that a change in board composition is needed to maximize shareholder value.

"Neither Shamrock nor its director nominees have any meaningful experience in the markets in which Coinstar operates and the Shamrock nominees are hardly independent of Shamrock," wrote Chairman Keith D. Grinstein and Chief Executive David W. Cole in the letter. "While we have no personal issues with Shamrock's nominees, we do not believe that their professional qualifications would meaningfully benefit your board."

Coinstar shares rose 67 cents to $36.99 in afternoon trading.