NEW YORK, Feb. 12, 2014 /PRNewswire/ -- LionEye Capital Management LLC today sent a letter to the Board of Directors of Wausau Paper Corp. (NYSE: WPP) urging the Board to hold management accountable for recent performance. The letter also stated that LionEye plans to vote for a change in the composition of the Board at the upcoming annual meeting. LionEye has been an investor in Wausau Paper for over two years and owns 3.7% of the common shares outstanding.
Stephen V. Raneri, Chief Executive Officer of LionEye Capital said, "We have been a patient investor in Wausau Paper for 2½ years. We believe that the Company has great assets and has the opportunity to create significant value for shareholders. However, we believe that the current Board of Directors is unwilling or unable to take all necessary steps to maximize shareholder value. Therefore, we believe that change in the composition of the Board, including the addition of shareholder representation, is in the best long-term interests of the Company."
The full text of the letter is attached:
February 12, 2014Board of DirectorsWausau Paper Corp.100 Paper PlaceMosinee, WI 54455-9099 Dear Members of the Board of Directors: As you know, LionEye Capital Management LLC and its affiliated funds own 1.9 million shares of Wausau Paper Corp. ("WPP" or "the Company") which represents 3.7% of the common shares outstanding. Our funds have been invested for over 2½ years and throughout this period we have been very patient in our interactions with you. Our patience has run out. Wausau Paper is facing its third proxy contest in three years. We believe the reason is that the Board of Directors is not the focused, engaged, proactive steward of capital that the shareholders and the Company deserve.