Valassis to buy Advo for $1.3B

P&G said to be cutting traditional ad buying

Interpublic's accounting woes continue

• Form 12b-25 re: 1Q 2005 Form 10-Q
• Form 12b-25 re: 2004 Form 10-K

Advo Inc

Catalina Marketing

Interpublic Group of Companies Inc

SEC_CODE_REF_0090001192884

Marketing services company to buy direct mail company

• Creates largest integrated media services provider
• $1.3B deal value, including $125mm in debt

• $37 per share
• Significant premium to recent AD market prices
• AD stock chart   VCI stock chart
• Target has a larger market cap than buyer

Announced 7.06.06

• Press release

Advisors

• VCI: Bear Stearns / McDermott Will
• AD:  Citigroup / Wachtell / Kirkpatrick & Lockhart

Agreements

• Merger agreement

Industries