Sept. 6 (Bloomberg) -- Valassis Communications Inc. said Advo Inc. refused to provide documents and other information relevant to a $1.3 billion acquisition agreement before Valassis went to court to break it off.

Valassis sought the information after Windsor, Connecticut- based Advo missed its third-quarter financial projections. Valassis said in a statement today that Advo ``materially overstated'' its operating income in April and May, just days before the acquisition agreement was made. Valassis also said Advo's actions raised ``serious concerns'' and that Advo had followed a similar pattern in withholding information from shareholders about the matter.

Advo accused Valassis on Sept. 1 of trying to get out of the acquisition or reduce its price. Valassis sued Advo on Aug. 30 in Delaware Chancery Court to rescind the deal because Advo had made ``false representations'' about its financial health.

Valassis, based in Livonia, Michigan, is the largest supplier of newspaper inserts. Its shares fell 21 cents, or 1.1 percent, to $18.29 at 4 p.m. in New York Stock Exchange trading. They have declined 37 percent this year. Shares of direct-mail company Advo fell 64 cents, or 2 percent, to $30.52 in New York Stock Exchange trading. They are down 8.3 percent this year.

To contact the reporter on this story: Don Jeffrey in New York at djeffrey1@Bloomberg.net.

Last Updated: September 6, 2006 17:04 EDT