Loading
Search
NEWS STORIES

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.

Text Size: + Increase | Decrease -
| Print Story | Email Story
Sponsored in part by HodagSports.com





 IN OTHER NEWS

Play Video

RHINELANDER - Fishermen in Rhinelander took advantage of the beautiful weather Saturday.

The Rhinelander Lions Club held their 40th fisheree on Boom Lake.

Lions Club Vice President Dan Hoppe loves seeing everyone that comes out, especially the kids.

+ Read More

ST. GERMAIN - Fans and racers with a need for speed won't need to wait any longer for the Radar Run.

Two days of snowmobile dragging and bikini races started Friday in St. Germain.

+ Read More

Play Video

NORTHWOODS - Habitat for Humanity Northwoods Wisconsin helps provide housing to those in need. Now, they're starting a new program to help people with minor home improvement projects.

"A Brush with Kindness" is a program for economically disadvantaged families.Habitat for Humanity Northwoods Wisconsin is now looking for families in need.

+ Read More

Play Video

WOODRUFF - Valentine's Day falls on a weekend for the second year in a row.

That's good news for local restaurants, which can expect more people to come in, but the weekend holiday isn't great for some other businesses, especially floral shops.

+ Read More

Play Video

- National and local elections will create headlines over the next year.

The next time Wisconsin goes to the polls is April 5 for the spring primary.

The League of Women Voters of the Northwood's is working hard to remind you of the recent changes to the photo ID requirements to cast your ballot.

+ Read More

Play Video

ST. GERMAIN - Driving a sled 140 miles per hour across a frozen lake may not be everyone's idea of fun.

But for those that do enjoy it, the St. Germain Radar Run kicked off Friday.

"It's an adrenaline rush like you wouldn't believe," said Joey Strub of Stillwater, Minnesota.

+ Read More

MADISON - Wisconsin Department of Corrections Secretary Ed Wall has resigned amid an investigation into allegations of abuse at the state's youth prison.

+ Read More
+ More General News
Search: 




Click Here