The largest shareholder of the Wausau Paper Company is not happy with how the Company is being run. Now, Starboard Value LP is recommending the Company either immediately replace management or sell.
On Friday, Starboard sent board members a scathing 10-page letter blaming Wausau Paper's current management and board for the Company's prolonged under-performance. Starboard cite the Company repeatedly ignored shareholders concerns, missed business opportunities, missed forecasts and were, "More concerned with lining the pockets of management."
The letter goes on to say, "We believe Wausau is at a crossroads and has two fundamental choices: either immediately replace management, improve execution as detailed above, and position the Company for standalone success, or explore a sale of the Company..."
Starboard also nominates three new Starboard-favored directors, including Jeffrey Smith, the founder and chief executive of Starboard. It is Smith's signature that appears on the bottom of the letter.
According to Starboard, the only Wausau mills with worthwhile profits are in Kentucky and Ohio. Those mills produce paper towel used in public restrooms.
If Wausau Paper were to close it's headquarters in Mosinee, the Company's presence in Wisconsin would be completely eliminated.
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