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.