Direct marketer Valassis gets discount for ADVO
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Valassis Communications Inc. said it would buy fellow direct marketer ADVO Inc. for $1.08 billion, an 11% discount to the original price in a deal ending a four-month legal battle.
Valassis, a newspaper insert distributor based in Livonia, Mich., will pay $33 a share in cash for ADVO, below the $37 a share it originally agreed to pay. The deal is valued at $1.2 billion.
Valassis sued ADVO to void the original deal in late August, accusing its management of misrepresenting the company’s financial health and was in turn countersued for backing out.
As part of the deal, the companies have agreed to dismiss their litigation.
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