Vertis Terminates Letter with ACG
BALTIMORE—Vertis Communications has terminated its letter of intent relating to its proposed merger with American Color Graphics (ACG), but the deal may not be dead. Vertis had proposed an offer with a deadline of midnight on September 30. When Brentwood, TN-based ACG did not accept, Vertis terminated the letter but said it was willing to continue discussions toward a deal.
The Baltimore Sun, citing Securities and Exchange Commission filings, noted that financially strapped ACG—absent the merger—would need to meet certain liquidity requirements by November 29, including an interest payment on a certain debt. Steps toward that end include selling the company or liquidating its assets.
A representative for Vertis said the company had no comment, citing ongoing talks between the firms.