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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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Friday, four young men got into a fight on Main Street. One man said he was stabbed in the chest.  Police say the suspect is a black man in his mid-20s, about 5' 9" tall, with a muscular build and short hair.  The victim was treated at the hospital and released.

Sunday morning, police responded to an incident at 2nd Street and Crosby Avenue. Witnesses heard glass breaking and people yelling about a stabbing.  Police don't have a victim or suspect description in that case, but they don't believe the two stabbings are connected.

If you have any information about the stabbings, call Detective Sgt. Gruber at 715-346-1518.

You can also call Portage County Crimestoppers to remain anonymous at 888-346-6600.

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