UPDATE 1-Wausau Paper's largest shareholder urges co to sell itself

Jan 12 (Reuters) - Wausau Paper's largest shareholder backed the company's decision to sell its print and color brand and close its mill in Wisconsin, but said it must evaluate strategic alternatives, including a sale of the company.

Starboard Value LP said the board should retain a reputable financial adviser to evaluate all alternatives to maximize value, including a potential sale of the paper segment or the company as a whole, a regulatory filing showed.

The activist hedge fund holds about 7.5 percent of the company's outstanding stock as of Sept. 29, according to a filing.

In December, Wausau said it will close its Brokaw paper mill in Wisconsin, cut 450 jobs and exit its print and color business.