Sprint Nextel Corp. on Monday attacked Dish Network’s competing bid for Clearwire Corp., saying Dish’s demands violate Sprint’s governance agreements with Clearwire and Delaware law.
Sprint’s allegations, in a letter to Clearwire’s board, are the latest salvo in the battle over the wireless service provider. Sprint already owns a majority stake in Clearwire and is tussling with Dish to buy out other shareholders.
Dish made a $4.40-per-share bid on May 29, challenging Sprint’s 3.40-per-share offer.
The fight over Clearwire and its valuable spectrum is part of a larger drama involving the fate of Sprint. Dish is trying to buy Sprint, the No. 3 wireless provider in the United States, for $25.5 billion.
Sprint said in its letter, “Many Clearwire stockholders appear to be under the mistaken belief that Dish’s proposal is a viable alternative to the Sprint merger agreement, and this is simply not the case.”
Among many complaints, Sprint said Dish’s demand to nominate Clearwire board members runs roughshod over the equity holder agreement’s requirement to pick independent directors.
Crest Financial, a Clearwire shareholder, blasted Sprint on Monday, demanding that Clearwire give full consideration to Dish’s bid. Reuters
