Wausau Comments on Starboard’s Decision to Nominate Directors

Print this Article | Send to Colleague

Wausau Paper, Mosinee, Wis., USA, issued a statement this week in response to an announcement by Starboard Value LP that it has nominated a slate of three directors for election to Wausau’s Board of Directors at the company’s 2014 Annual Meeting of Shareholders. The company stated that:

"Under our current management and board, Wausau Paper has completed a successful strategic transformation into a pure play tissue company that is delivering strong volumes, margin expansion, earnings, and free cash flow growth. The company has excellent forward momentum and our stock price has increased approximately 40% over the past year. Our board is unanimously supportive of the company’s strategy and management team, and is fully committed to creating further value and acting in the best interests of our shareholders.

"While we always appreciate input from shareholders, we were surprised and disappointed by Starboard’s actions. Over the past two years, we have tried to work constructively with Starboard and have already added four of their nominees to our nine-person board. However, we believe that it is disproportionate and inappropriate that Starboard – which holds only 15% of our shares – should be able to designate the majority of the board, as would result if their new nominees were elected. The company expects to communicate further with shareholders in due course."

Wausau Paper produces a complete line of away-from-home towel and tissue products.

Back to TAPPI: Over The Wire