Trial Date Set in Advo/Valassis Legal Battle
The legal battles between FSI giant Valassis Communications, Inc. and Advo, Inc., the nation’s largest direct-mail marketer, will move to a new level in December when a trial begins.
A judge in Delaware Chancery Court will begin hearing arguments Dec. 11 in the lawsuits over a $1.3 billion merger agreement between the two entities.
“When we have our day in court and the facts are all known, we fully expect the merger agreement to be rescinded, making today’s vote by Advo shareholders null and void,” Valassis said in a statement.
Advo shareholders on Wednesday approved the deal to sell the company to Valassis for $37 per share. The agreement was announced in July. In its suit, filed Aug. 30, Valassis accused Advo of fabricating financial information during acquisition negotiations and sued to block the deal. Advo countersued to force Livonia, MI-based Valassis to complete the merger, which was supposed to close on or before today. (PROMO Xtra, Sept. 12, 2006).
If the deal were to go through, it would create the nation’s largest integrated media services provider, serving 20,000 advertisers worldwide, including 94 of the top 100 advertisers in the U.S., the companies said. Revenue for the two should reach $2.65 billion next year
Founded in Hartford, CT, in 1929, Advo mails about 27 billion pieces annually, and is the U.S. Postal Service’s largest private customer.
