Advo Stockholders Approve Valassis Merger Agreement
Advo Inc. stockholders voted overwhelmingly at its special meeting to adopt the agreement and plan of merger with Valassis Communications Inc. and Michigan Acquisition Corp., a wholly owned subsidiary of Valassis.
On Aug. 30, Valassis commenced litigation in the Delaware Chancery Court seeking to rescind the merger agreement with Windsor, CT-based Advo based on allegations of fraud and material adverse changes.
Livonia, MI-based Valassis alleges that Advo's management materially misrepresented the financial health of the company and failed to reveal internal control deficiencies. Among other items, the lawsuit seeks a court declaration that Valassis has no right to rescind or terminate or otherwise evade its obligations under the July 5 binding definitive merger agreement.