Altai Capital Buys Into Wausau Paper Corp. (WPP)

Rishi Bajaj, Toby Symonds, And Steve Tesoriere‘s Altai Capital has purchased 2.6 million shares of Wausau Paper Corp (NYSE:WPP), according to a recent SEC filing. The technology-focused hedge fund now owns 5.5% of Wausau’s outstanding stock.

What prompted the new position? It seems activist investor Jeff Smith of Starboard Capital‘s letter to the company nominating three directors to the Board was the inspiration. And it seems Altai Capital has intentions of doing more than just sitting passively on the sidelines.

Wausau Paper Corp.(NYSE:WPP)

Per the filing:

The Reporting Persons have engaged and may in the future engage in discussions with and/or meet with management, the Board of Directors of the Issuer (the “Board”), potential acquirers, financing sources and other shareholders and/or formulate plans or proposals regarding the Issuer or its securities.

Of course, the hedge fund doesn’t merely want to have discussions. The filing also indicates that Altai Capital “may take positions or make proposals” on a range of issues related to Wausau Paper Corp. (NYSE:WPP)’s operations

Further the company is on board with Starboard (at least at this early stage), as stated in the filing, Altai Capital has “”reviewed the materials filed by Starboard Value LP (“Starboard”), including Starboard’s recent announcement of its intention to nominate three individuals for election to the Board.” The company stated the need for additional discussion with Mr. Smith and company, but  ”believe that Starboard has made a convincing prima facie case supporting the need for continued enhancement of the Issuer’s Board.”

Altai Capital now holds the second most Wausau Paper Corp. (NYSE:WPP) shares behind Starboard, which owns 15.2% of the company’s outstanding stock. Although Altai has just bought into the mission, Wisconsin-based paper products company, Starboard has been long WPP for nearly three years.

As we stated last week,  Starboard believes that Wausau Paper Corp. (NYSE:WPP) has been significantly undervalued and over the past two years and are trying to prod the company into taking serious action to enhance the shareholder value of the company. It seems that Bajaj, Symonds, and Tesoriere’s hedge fund is intent on doing the same thing.

It’s worth noting that Wausau Paper Corp. (NYSE:WPP) didn’t take too kindly to Mr. Smith’s letter, saying it was ”surprised and disappointed” by the 10-page document.

Disclosure: none

Recommended Reading:

Hedge Fund Highlights: Daniel Loeb, Jim Chanos & Jana Partners

Altimeter Capital Management Continues NQ Mobile Inc (ADR) (NQ) Buying Binge

Healthcor Management Further Invests in CareView Communications Inc (CRVW)

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

50 Crazy Facts About Japan You Won’t Believe

Top 10 Least Expensive Hybrid Cars to Save the Planet With

The 10 Biggest ‘Gate’ Controversies in History

The 10 States with the Highest Nursing Shortages Leaving Their Hospitals Depleted

The 10 Best Value Investment Blogs that Every Investor Must Read

The 6 Cheapest Boarding Schools in Europe 2015

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!