Starboard’s Managing Director To Serve As Observer of Wausau Paper Corp. (WPP) Board

Jeffrey Smith’s Starboard Value LP has entered into a letter agreement with Wausau Paper Corp. (NYSE:WPP), a new amended filing showed. Pursuant to the agreement, Gavin T. Molinelli, managing director of Starboard Value LP will serve as an observer of the board of directors of Wausau Paper Corp. (NYSE:WPP) until the earlier of the 2014 annual meeting of shareholders or September 30, 2014.

Jeff Smith

Starboard currently owns 7.50 million shares of the company, amassing 15.1% of the common stock outstanding. In February, Starboard sent a letter to Wausau Paper Corp. (NYSE:WPP) to express its disappointment after the company reported negative earnings for the fourth quarter of 2013. The fund stated the company has failed to take advantage of the opportunities that could increase its value.

Starboard’s Letter to Wausau Paper (February 18)

In another letter sent to the board of Wausau Paper Corp. (NYSE:WPP) in January, Starboard asked for a change in the board of the company. The fund intended to elect three new members to the board, two of them being industry experts and one a direct representative of the shareholders, in contrast to the members nominated by the company who had no relevant operating experience.

Starboard Value Letter to Wausau Paper (January 17)

Wausau Paper Corp. (NYSE:WPP), headquartered in Mosinee, Wisconsin, is engaged in producing and marketing a complete line of away-from-home towel and tissue products. Recently, Henry C. Newell has stepped down as CEO of the company, effective immediately, according to a statement. In addition, the company said that Thomas J. Howatt, non-executive chairman, will retire from the board in advance of the company’s 2014 annual meeting of shareholders.

For the full-year 2014, the company has reaffirmed its guidance of 6% annual case shipment growth, with the EBITDA in fourth quarter of 2014 in a range of $20 to $24 million and EBITDA margins of 20% and 24%. The company anticipates 2014 fourth-quarter net earnings from continuing operations of $0.10 to $0.13 per share.

Disclosure: none

Recommended Reading:

Jeffrey Smith, Starboard Value are Bullish on Unwired Planet Inc (UPIP)

Jeffrey Smith, Starboard Value’s Investor Presentation On Darden Restaurants, Inc.(DRI); Argue Against Red Lobster Spin-off

Starboard Value Further Reduces Stake in Integrated Device Technology, Inc (IDTI)

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Click here to Read Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 74 percentage points in 2.5 years. Our beta is only 1.2 (download a FREE newsletter and see the details inside)

Lists

Best Selling Magazines in the World

Shortest People in History

The Most Celebrated Holidays in the World

Most Expensive Handbag Brands in the World

Top Selling Comic Book Issues of this Century

The Most Powerful Women in Politics

Best Paid DJs

Most Rebellious Female Artists

Best Paid TV Actresses of 2014

Best Paid Actors of 2014

Most Expensive Horses in the World

Tallest People Ever

Most Encouraging Feminist Celebrities

Best Paid Supermodels of 2014

Top 10 Suburbs for Retirement in 2015

10 Wealthiest Cities in America

Top 10 TED Talks for Entrepreneurs

Best TED Talks on Education

25 Most Dangerous Places to Live in America

Top 10 Ski Resorts in the United States – 2014 List

Top 10 Most Remote Places in the World

Most Visited Museums in the United States

Wealthiest Photographers in the World

Most Famous Gay Athletes

The World’s Most Famous Circuses

Best Hair Stylists

Most Popular NASCAR Drivers

The Best Romance Movies of all Time

The Most Wanted Drug Lords

The Oldest Money Managers

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

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 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!