WINDSOR, Conn. (AFX) - Advo Inc. said Friday it is countersuing newspaper insert marketer Valassis Communications Inc. to force the company to complete its $1.3 billion acquisition, after Valassis sued to rescind the deal, alleging fraud.
Advo, the nation's largest direct-mail marketer, also wants Valassis to pay interest on the deal from Sept. 15, assuming the terms are approved by Advo shareholders at their meeting on Sept. 13.
Advo claims Valassis is trying to force a lower sale price by suing to terminate the merger agreement. For its part, Valassis accuses Advo of withholding and fabricating information about its finances and other factors that affect the long-term value of the Windsor, Conn.-based company.
Advo has countered that Valassis' claims are 'nothing more than a case of buyer's remorse,' and that Valassis appears to be trying to drive down the purchase price in violation of the merger deal.
Valassis, based in the Detroit suburb of Livonia, filed its lawsuit in late August in Delaware Chancery Court. In addition to seeking to terminate the deal, Valassis wants an undisclosed amount of damages from Advo.
Advo shares closed down 3 cents at $30.05, while Valassis shares closed down 7 cents at $17.68, both on the New York Stock Exchange.
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