Tuesday, June 18, 2013
Sprint Nextel is suing to stop Dish Network's buyout offer for wireless data network operator Clearwire. The nation's third-largest cellphone carrier says the proposed deal violates the rights of Sprint and other Clearwire shareholders.
Dish is offering to pay $4.40 per share for Clearwire Corp., which has recommended that its shareholders approve the offer. That reverses its earlier stance in support of a takeover bid by Sprint, its majority shareholder.
Dish says its offer is contingent on being able to buy 25 percent of the company.
Sprint Nextel Corp. says Dish cannot complete its offer without the approval of Comcast Corp. and holders of at least 75 percent of Clearwire's shares.
Sprint says the deal also violates shareholder rights under Clearwire's charter and an equity holders agreement.