Lawsuit: Valassis Could Have Brought More Money

The fund—the Municipal Police Employees Retirement System of Louisiana—believes Valassis' public shareholders are being frozen out in "a grossly unfair transaction," the newspaper said. The fund is asking a judge to block the deal, which is expected to be completed in the first quarter.

The newspaper, quoting the pension fund, said that officials from MacAndrews & Forbes Holdings (Perelman's company) presented an offer to Mason and Recchia last August, but did not share the bid with other Valassis directors for more than a month while the sides negotiated. When the other directors learned of the offer, they shelved a review of strategic alternatives.