By: Shareholders of direct-mail marketer Advo Inc. on Wednesday voted to approve the $1.3 billion sale of the company to the marketing company Valassis Communications Inc., despite Valassis' efforts to try to back out of the deal.
Advo officials did not release vote totals.
Andy Hopson, spokesman for Livonia, Mich.-based Valassis, declined to comment Wednesday.
The companies announced the sale in July, saying Valassis would pay $37 for each share of Advo stock. But Valassis sued a month later to block the sale, accusing Advo of withholding and fabricating information about its finances and other factors that affect its long-term value.
Advo countersued, claiming that Valassis' claims were "nothing more than a case of buyer's remorse," and that Valassis appeared to be trying to drive down the purchase price in violation of the deal.
The combined company was expected to serve about 20,000 advertisers, including 94 of the top 100 in the United States, with direct mail, newspaper inserts, coupon fliers, e-mail marketing and other programs.
It would have about 7,900 employees with operations in nine countries.
Analysts have questioned whether the companies can move past the rancor and successfully blend their operations if a court rules that Valassis must honor the deal.
In an analysis after Valassis filed its lawsuit, Merrill Lynch said Valassis risks becoming "saddled with a company that it does not want" if its attempts to terminate the deal are unsuccessful.
Advo shares rose 49 cents to $30.75 in early afternoon trading on the New York Stock Exchange. Valassis stock rose 9 cents to $17.64. Last year, Valassis shares were trading around $40.
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