MediaBuyerPlanner: Fourth quarter profits for Valassis Communications fell 66 percent, due in large part to costs related to its proposed acquisition of Advo Inc. The company also experienced slower sales in the fourth quarter.
Net profits in the quarter ended Dec. 31 dropped to $6.9 million from $20.3 million in the same quarter the previous year, writes DM News. Revenue in 2006 was down 7.7 percent to $1.04 billion, with profits of $51.3 million.
Valassis sued Advo to avoid completing the $1.3 billion deal it made last August, claiming the company misrepresented its financial health. Advo filed a countersuit, and the companies eventually agreed to dismiss litigation. Advo dropped its asking price from $37 dollars per share to $33 per share, while Valassis agreed to acknowledge that it had found no evidence on which to base its claim of having been defrauded by Advo.
Related stories:
- Advo, Valassis Settle, Will Merge After All
- Valassis, Advo in Settlement Talks
- Valassis and Advo Case Hits Court
- Advo Files Counterclaim against Valassis
- Valassis Seeks to Rescind Advo Offer
- Valassis Buys Advo for $1.3 Billion
