Sprint sues both Dish Network and Clearwire
Clearwire's board last week recommended that stockholders accept the $4.40 a share tender offer from Dish Network for Clearwire's shares over Sprint's $3.40 a share offer. Sprint owns 51% of Clearwire's stock but still must get a majority of the minority holders to vote in favor of its deal, which seems unlikely at this point.
The Clearwire stockholder vote which was to be held last Thursday, has been put off until next Monday. Sprint says it will enforce its governance rights in Clearwire which could prevent Dish from buying all of the company. A statement issued by Sprint on Monday makes that point clear. According to the nation's third largest carrier, Dish "repeatedly attempted to fool Clearwire's shareholders into believing its proposal was actionable in an effort to acquire Clearwire's spectrum and to obstruct Sprint's transaction with Clearwire."
Clearwire's charter requires 75% of the outstanding shares to be voted in favor of Dish's tender offer for it to be valid, according to Sprint. Additionally, Comcast has to agree to the offer. Since the latter has not occurred, and since a 75% vote in favor of Dish's deal mathematically cannot occur, Sprint says that the bid is unlawful.
1. ZeroCide (Posts: 707; Member since: 09 Jan 2013)
The plot thickens even further.... DUM DUM DUM!!!!!
2. Dorothy69 (banned) (Posts: 498; Member since: 21 May 2013)
Agreed!!!!! Can't believe how DUM this got.
Glad I'm on Verizon!!!!
3. jdoee100 (Posts: 331; Member since: 04 Jun 2013)
Sprint owns the majority share of the company. Without the sprint's approval, how can another company buy the company?
5. scorpeyun (Posts: 24; Member since: 18 May 2012)
Like Sprint doesn't have enough trouble keep up with Big Red and AT&T with there LTE roll out, customer base and device selection, now they have to deal with Dish and Clearwire.....