Valassis-Advo Merger Trial Kicks Off
WILMINGTON, DE—The summer romance that led to the acquisition of Windsor, CT-based ADVO by Valassis Communications of Livonia, MI, has officially turned ugly as the two sides battle it out in Chancery Court.
The trial, which began Monday, kicked off with Valassis CEO Alan Schultz testifying that ADVO withheld and fabricated information about its finances prior to agreeing to merge with Valassis, The Associated Press reported. Valassis is trying to get out of the $1.3 billion deal.
ADVO is counter-suing, claiming Valassis has buyer’s remorse and is trying to drive down the purchase price.
On Thursday, a valuation expert testified on behalf of Valassis that the agreed-upon price for ADVO is somewhere between $300 million and $400 million too high.
Leo Strine Jr., vice chancellor for the Delaware Court of Chancery, will determine whether the deal should be made official at the end of the trial, which should last for another week.
NOTE: PI Weekly returns on January 5, 2007. Have a safe and happy holiday season!