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Largest Wausau shareholder seeks dividend, buyback

NEW YORK (AP) -- Wausau Paper Corp.'s biggest shareholder is pressing the company's management and board to buy back $100 million in shares and initiate an annual dividend of at least $1.

Starboard Value LP, which owns about 15.2 percent of outstanding shares in the Mosinee, Wis., tissue paper company, on Tuesday released a letter sent to Wausau's board and CEO Henry Newell.

The letter noted that Wausau has committed to returning to shareholders 50 percent of the cash that the company brings in after paying for capital expenditures, but argued that this plan did not go far enough in sending capital to shareholders.

The company currently pays a 3-cent quarterly dividend.

Starboard also suggested that Wausau change the name of the company to highlight that it is now primarily a tissue paper business. Wausau has sold its challenged print and technical paper businesses over the past two years.

A call to Mosinee, Wis.-based Wausau seeking comment was not immediately returned.

Shares rose 26 cents, or 2 percent, to $13.01 Tuesday.