Sprint Sues To Stop Dish Clearwire Buyout

Sprint on Monday filed a lawsuit in the Delaware Court of Chancery claiming that the $6.3 billion deal for the acquisition of Clearwire by Dish violates the rights of Sprint and other Clearwire shareholders and is against Delaware law.

Sprint owns a majority stake (50.2%) in the 4G wireless carrier and, in December, offered to buy the remaining shares for $2.2 billion or about $2.97 per share.

However, Dish has offered to pay $4.40 per share for Clearwire, 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 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," the suit alleges.

Earlier this month, Sprint had sent an open letter to Clearwire's board saying the conditions of Dish's offer are illegal and violate Clearwire Corp.'s shareholder agreement. But Dish said in a separate letter that its offer was "carefully designed to comply with applicable law and the existing rights of Clearwire stockholders including Sprint."

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