Outerwall Shares Surge Amid Doubled Dividend, Strategic Alternatives Exploration

Shares of Outerwall Inc (NASDAQ: OUTR) are being bid up some 9 percent in Monday's after-hours trading session following exciting news for investors: word the company has begun the process of exploring strategic and financial alternatives.Although the Outerwall press release disclosing the news did not mention specifics, the exploration of strategic alternatives often time means management will consider a possible sale of the entire company, the sale of parts of the company, or myriad strategic partnerships.The company has retained Morgan Stanley as a financial advisor during the process, and Perkins Coie as a legal advisor.Outerwall's Board also announced the raising of the company's quarterly dividend from $0.30 to $0.60 per share. The dividend is expected to be paid on June 21, 2016 to holders of record on June 7. Erik Prusch, the company's CEO, said, "The increase of our quarterly dividend to this sustainable level, and the decision to explore strategic and financial alternatives both clearly demonstrate that the Outerwall Board of Directors and management team are committed to acting in the best interests of the Company and all shareholders. The Board and management team will evaluate all options thoughtfully and carefully with the support of our advisors. Throughout the review process, Outerwall will remain focused on executing on our operational plans, managing our businesses for profitability and cash flow, and continuing to align costs with revenue to create operational efficiencies, while returning significant capital to our investors."Outerwall shares last traded at $37.50; the stock closed Monday's session at $34.39.