Estimated read time: Less than a minute
This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
LIVONIA, Mich. (AFX) - Valassis Communications Inc., a supplier of advertising packets for newspapers, and Advo Inc., the nation's largest direct mail marketer, said Monday they are in discussions to settle the ongoing litigation between the companies.
Valassis is seeking to scuttle a deal reached earlier this year for it to buy Advo. A trial in the Court of Chancery for New Castle County, Delaware, has been recessed for a day pending the outcome of the discussions.
"There can be no assurance that any settlement will result,' according to the companies' release.
Valassis has accused Windsor, Conn.-based Advo of withholding and fabricating financial information. Advo has countersued in Delaware, saying Valassis has buyer's remorse and wants to drive down the $1.3 billion purchase price announced in July.
Shares of Valassis dropped $1.48, or 9.4 percent, to $14.29 in morning trading, while Advo added $1.13, or 3.6 percent, to $32.90, both on the New York Stock Exchange. Copyright 2006 Associated Press. All rights reserved. This material may not be
Copyright 2006 AFX News Limited. All Rights Reserved.
