Sprint lawsuit seeks to block Clearwire stock acquisition by Dish bit.ly/19eSIvT Sprint has named both Dish and Clearwire in a lawsuit today to prevent Dish’s potential acquisition of a large quantity of Clearwire stock. That statement seems relatively straightforward, but the details get pretty muddy. Sprint of course has a vested interest in the fate of Clearwire as they are the majority shareholders with 50.2%. They are the other party bidding on that remaining 49.8% that Dish is after as the Clearwire spectrum features prominently in Sprint’s future LTE rollout plans. Sprint asserts that the Dish offer is nothing more than an attempt to trick Clearwire’s shareholders considering among other reasons that 75% of the Clearwire shareholders would need to vote in favor of the Dish buyout and they are in a position to guarantee that just a bit more than half of those shareholders certainly won’t be interested. Even were this issue to be circumvented the deal would remain unlawful according to Sprint as it would leave Dish with “veto power over fundamental corporate events that Delaware law places in the control of the directors or shareholders”. As some of you may already be aware there is yet another level to this. While Dish is battling it out with Sprint over Clearwire they also have a second front open as they bid against SoftBank to obtain none other than Sprint. On June 25th Sprint shareholders will vote on the current offer from SoftBank for 21.6 billion dollars which would in turn help Sprint to complete their buyout of Clearwire. The lawsuit came late in the day so we’ll have to wait for the response from Dish who I suspect won’t find the matter quite as cut and dry as Sprint made it out to be.
Posted on: Tue, 18 Jun 2013 05:31:56 +0000
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