Valassis Seeks To Cut And Run From Advo Deal

Law360, New York (August 31, 2006, 12:00 AM EDT) -- Valassis Communications Inc. has sued Advo Inc. to pull out of its $1.3 billion proposed merger deal combining the two advertising and direct-marketing companies, claiming that Advo misrepresented its financial health and neglected to disclose internal control deficiencies.

Valassis lodged the suit Wednesday in the Delaware Chancery Court, which permitted the company’s complaint to be sealed.

"We believe that taking this action is in the best interest of our shareholders," Valassis Chairman, President and CEO Alan F. Schultz said. "ADVO left us with no choice. The...
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