Sprint Slams Dish's Clearwire Bid, Calls It Illegal
Jun 3, 2013, 8:21 AM by Eric M. Zeman
Sprint today submitted a letter to Clearwire's board of directors in which it makes clear its intent to fight Dish Networks' proposed acquisition of Clearwire. First, Sprint says Dish's offer, which includes a contractual agreement to name three members to Clearwire's board as well as veto certain Clearwire actions, violates Delaware law. Further, Dish's proposal essentially asks Sprint and other Clearwire shareholders to give up some of their legal rights regarding Clearwire. Sprint, which owns 50.5% of Clearwire, stated plainly that it will not vote in favor of Dish's proposal, tender its own shares, or waive any of its legal rights. "Having invested billions of dollars in Clearwire, Sprint intends to enforce its legal and contractual rights, which are fundamental to investments it made," said Sprint. Sprint recently raised its bid for the portion of Clearwire that it does not already own from $2.97 per share to $3.40 per share to appease certain Clearwire shareholders. Dish followed Sprint's bid with one for $4.40 per share. Dish's proposal came just two days ahead of Clearwire's planned vote to accept Sprint's proposal. Clearwire is evaluating Dish's new offer, and rescheduled the vote for June 12.
Comments
cut it out, Sprint
stop firing off letters to DOJ, FCC, Etc.
Just compete! build out a network capable of more than 1meg downlink, build a network that can deliver a text message.
No worries Tmobile aint doing any better with their service that doesnt work inside buildings unless you have WiFi. HAHAHAHA.
Divorce.
If my Wife and I were to split and divorce, we would have the option to either buy each other's portion of our house OR sell it. Not knowing the entire legality, I would think that Clear doesn't have the right to just have anyone purchase them without Sprint's blessings. Clear has a financial obligation to Sprint and should make sure Sprint can and will be paid back for the spoon feeding.
John B.
Again, MadFatMan AGREES w/ Slammer...
One of these days I need to send you a six pack of whatever it is that you drink....
Rob P.
Thinking the same, they have the majority of the shares and can just vote no.
Dish is Redonkulous!
Again, Clear(wire)'s inability to meet their contractual fiscal corporate responsibility to Sprint not only failing to meet the minmum payments as agreed but their inability to even meet their interest payments is inexcusable.
Sorry Dish, this isnt a corporate buy out that Sprint is offering its a repossession and eviction.
The other investors need to take Sprint's offer of the $3.40 per share as it is far more than what they would of received without Sprint sinking a deluge of capital into Clear(wire) otherwise without Sprint they would of gone bankrupt.
Rob P.
