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Wausau Paper's largest shareholder calls for management overhaul and move, or saleSubmitted: 01/19/2014
Story By Lauren Stephenson


MOSINEE - Wausau Paper's largest shareholder, Starboard Value LP, wants the company to replace management or consider selling the company.

Starboard owns more than 15% of Wausau Paper's stock.

It publicly released a 10-page letter outlining its suggestions to board members Friday.

The letter criticizes current management for "ignoring shareholder concerns" and the company's "prolonged underperformance under the direction of the current management team and Board."

In the letter, Starboard's CEO Jeffrey Smith says Wausau Paper's board "has been more intent on lining the pockets of management."

He says the board spent $250 million to restructure its printing and writing business.

Starboard suggested they sell it.

Wausau Paper did finally sell the two specialty printing mills in Rhinelander and Mosinee to KPS Capital Partners LP last summer.

But Starboard CEO Jeffrey Smith said they should have sold a year earlier when the business was worth more.

Starboard claims management refuses to move headquarters from Mosinee even though "Wausau's Tissue business, which now represents 100% of revenue, operates entirely out of Kentucky and Ohio."

Wausau Paper just invested $220 million into its facility in Kentucky.

Starboard argues the management should move there to oversee the operations.

The letter also nominates three people directors to the Wausau Paper board.

One of those nominees is Starboard CEO Jeffrey Smith.

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 IN OTHER NEWS

VILAS COUNTY - A 77-year-old man died in a crash near Boulder Junction late Tuesday afternoon.

According to the Vilas County Sheriff's Office and Wisconsin State Patrol, it happened around 3:30 p.m. at the intersection of U.S. Highway 51 and County Highway H.

Investigators think a van went through an intersection and hit a semi truck.

"There was injury," said Boulder Junction Fire Chief Matthew Reuss. "The two passengers in the van had to be extricated. One was taken to Howard Young Medical Center for further care. The driver of the semi was uninjured and the second passenger in the van was pronounced dead at the scene."

According to Wisconsin State Patrol, the driver of the van is a 68-year-old woman from Colby. Crews later took her to St. Joseph's Hospital in Marshfield for non-life threatening injuries. Her passenger, a 77-year-old male from Colby, died in the crash. They were both wearing seatbelts. 

The driver of the semi is 63 years old and from South Range. 

Traffic was rerouted through Boulder Junction for several hours and was reopened shortly before 9 p.m. Tuesday.

Several units responded to the scene.

"Because we had multiple patients, we dispatched multiple ambulance units," Reuss said. "We called in resources from Arbor Vitae for traffic control and we called Manitowish Waters for help in extrication and ambulance service as well as Medic 5 out of Howard Young."

State Patrol and the Vilas County Sheriff's Office will investigate the crash.

Police will not release the names until the families are notified. 

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STEVENS POINT - A baby in Portage County ended up in the hospital for seizures twice in three days last fall.  Police think the mother's live-in boyfriend may have shaken that baby.

Matthew Huettl, 25, pleaded not guilty to felony charges for first-degree reckless injury and child abuse in Portage County Court on Tuesday.

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RHINELANDER - The farther south you go, the less snow you'll see. That's bad news for people who live there, but great for getting people to come to the Northwoods.

The Rhinelander Area Silent Trails Association puts in a lot of work, in part to attract more people to its trails. 

The group works with the Oneida County Forest to improve trails.

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RHINELANDER - The streets of downtown Rhinelander changed quite a bit over the last year. The construction will pick up again this spring, but there is a possibility for some last-minute changes to those construction plans.

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RHINELANDER - When police arrested Alexander Durand for stealing a car, they found he had been stealing mail as well.

The Oneida County Sheriff's Office arrested Durand, 21, Saturday for driving a car stolen from a house near Rhinelander. During that investigation, officers found a lot of other people's mail on Durand's property.

The mail was from all over Oneida County as well as other counties.  The Sheriff's Office will contact the people whose mail has been found.

Durand is due in court January 23.

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HARSHAW - On his home computer, Phil Hejtmanek gets used to waiting patiently as webpages load, seeing spinning wheels as videos buffer, and putting work on pause as downloads slowly trickle in.

"Streaming a movie on Netflix is a pipe dream," Hejtmanek said with a laugh. "That's impossible."

Hejtmanek lives on West Horsehead Lake in the Oneida County town of Cassian. His best option for internet service is DSL provided by Frontier, a technology which is a distant memory for many people in cities.

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NORTHWOODS - Roads stayed fairly safe north of highway eight Tuesday, but an ice storm caused a lot of slick conditions south of there.

As of Tuesday morning, the state patrol dealt with more than 200 incidents around the region.

But for the most part, drivers weren't crashing into each other.

"The number of slide ins have really outnumbered the number of crashes, which kind of tells us that's good that motorists have been listening and kind of adding a little more distance between themselves and other vehicles so that's good, so it looks like the total number of slide ins have been significantly higher than crashes," said State Patrol Sergeant, Dan Gruebele

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