Sprint Nextel has found a new manner in which to deter Dish Network from attempting to acquire a stake in Clearwire, filing a lawsuit in the Delaware Court of Chancery claiming the proposed deal violates state law and the rights of Clearwire stakeholders.
Sprint Nextel added that the legal action “seeks to rescind certain parts of the tender offer agreement and seeks declaratory, injunctive, compensatory and other relief.” The carrier had previously laid out many of the complaints noted in the lawsuit in a letter it had sent to Clearwire’s board of directors earlier this month, centered on the notion that Dish Network’s attempt to acquire a stake in Clearwire and place on Clearwire’s board was “not actionable” as it violated Clearwire’s charter.
Dish Network for its part has refuted the Sprint Nextel claims, having itself sent a letter to Clearwire’s board noting its most recent offer to acquire a stake in the company for $4.40 per share was valid. A special committee set up by Clearwire to evaluate the competing offers from Sprint Nextel and Dish late last week had voted in favor of the Dish Network proposal.
“Sprint’s lawsuit is a transparent attempt to divert attention from its failure to deal fairly with Clearwire’s shareholders, as well as to exploit its majority position to block Clearwire’s shareholders from receiving a fair price for their shares,” Dish Network noted in a statement following publication of the lawsuit. “Dish is confident that its superior offer, which has been unanimously recommended by the Clearwire board, including the majority appointed by Sprint, will be upheld and Clearwire shareholders will be free to realize the 29% premium represented by the Dish offer.”
The Dish Network offer is currently at $1 per share more than Sprint Nextel’s standing offer, which has the carrier looking to purchase the remaining stake in Clearwire it does not currently own.
Clearwire shareholders are currently scheduled to vote on the proposals June 24, though the lawsuit filed by Sprint Nextel could impact that date.
In the meantime, analysts seem bullish on Sprint Nextel rival T-Mobile US gaining market share from larger rivals Verizon Wireless and AT&T Mobility. The carrier has been cited for its aggressive “no-contract” rate plans and device financing model as having garnered strong consumer reaction during the ongoing second quarter.
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