ADVO Pushes Forward with Merger Plans
WINDSOR, CT—Despite last week’s announcement that Valassis was suing ADVO Inc. to rescind its $1.3 billion merger agreement, ADVO said it would begin mailing supplemental proxy materials in conjunction with the special meeting scheduled to adopt the merger agreement.
The meeting is slated for next Wednesday. Upon completion of the merger, ADVO stockholders would receive $37 per share.
ADVO also said the company had not consented to the unsealing of Valassis’ complaint because it contains non-public information about ADVO that Valassis agreed to keep confidential. In a statement, ADVO noted that Valassis actually filed the complaint under seal because it understood that the parties’ confidentiality agreement required it to do so.
“ADVO rejects Valassis’ invitation to litigate this case by press release. ADVO will instead litigate its case with evidence and briefs to the Delaware Chancery Court,” the statement concluded.
Valassis alleges ADVO intentionally provided false information and “withheld material information” regarding operating income.