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Altai Capital, Starboard Value Push for Changes at Wausau Paper

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Altai Capital Management LP, New York, N.Y., USA, has joined Starboard Value LP, New York, N.Y., in its push for changes at Wausau Paper Corp., Mosinee, Wis. Altai now has some 2.7 million shares, or 5.5% of Wausau Paper, according to a recent regulatory filing. The hedge fund said it intends to discuss proposed board changes with Starboard and the company.

Starboard, the largest shareholder in Wausau, in January nominated three directors to the board and said the company should replace its management or seek a sale because of underperformance. The fund, which has been trying to make changes at the company for the past 2 1/2 years and already has four directors on the nine-person board, is demanding the return of more cash to investors, cost cuts, and an improvement in management focus.

Wausau sold its specialty-paper segment last year and in 2012 divested a group of brands including Astrobrights and Royal. The stock, which has gained 38% in the past year, fell 0.5% to $13.42 at the close in New York, giving it a market capitalization of $664 million.

 

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