Sprint Files Lawsuit Against DISH And Clearwire
News: US-based telecoms operator Sprint Nextel filed a lawsuit against local satellite technology firm DISH Network and wireless service provider Clearwire Corporation. Sprint Nextel claimed DISH's takeover of Clearwire would violate Delaware law, governance rights of Sprint Nextel as well as the rights of strategic investors supported by Clearwire's charter. Additionally, DISH's takeover offer will not be completed unless it gains 75% of outstanding votes in favour and secures approval from Comcast. The shareholders of Clearwire are scheduled to vote on June 24.
BMI View: Sprint struck a deal in December 2012 to acquire the rest of Clearwire, but many Clearwire shareholders are unsatisfied with Sprint's evaluation. The approval from the majority of Clearwire's minority investors is needed before the buyout can go ahead. DISH has placed a rival bid for a higher amount in an attempt to derail Sprint's plans. In February 2013, Clearwire drew US$80mn in financing from Sprint, as part of the December agreement. Talks are ongoing between Clearwire and both suitors.