Sprint Nextel this week sent a letter to Clearwire’s board of directors noting that Dish Network’s recent bid to acquire Clearwire was “not actionable,” citing “certain provisions violate Delaware law.”
According to Sprint, “Clearwire’s granting the governance rights required by DISH would effectively require Sprint to give up certain bargained-for rights in clear violation of Delaware law.”
Roger explains the two week delay in the Clearwire vote is interesting in that it is one day after the Sprint vote on the Softbank buyout. Sprint and SoftBank hope the merger will be consummated in July 2013.
Entner also indicates that Dish is only interested in 25% of the Clearwire stock. That means that 75% of Clearwire stockholders will “get nothing” from the Dish deal.
Crest Financial, which holds 8 percent of Clearwire’s stock, is fighting a proxy battle against Sprint’s takeover bid.
DISH Network last week offered to acquire Clearwire for $4.40 per share in cash but only wants to acquire around 25 percent of Clearwire’s voting stock. Dish said it wants the right to pick at least three Clearwire board members and more if it acquires more of Clearwire’s shares.
Charlie Ergen’s offer of $4.40 a share for 25% of Clearwire makes sense to me. Ergen needs infrastructure for their 40 MHz of 2.1 MHz. In addition, that spectrum could be coordinated by Sprint for maximizing the 2.1 GHz LTE service.
Sprint and Softbank understandably don’t want a disruptor messing up their business model.
But a disruptor is what they’ve got. That’s good news for consumers.
Related Dailywireless articles include; Clearwire Ownership Vote Delayed 2 Weeks, Battle for Clearwire, Clearwire Committee Likes Sprint Offer Best, Verizon to Buy Clear Spectrum for $1.5 Billion?, Sprint Buyout of Clearwire Fought by Crest Financial, Sprint to Buy Clearwire, DISH Proposes to Buy Clearwire, Sprint Buying Clearwire?, Sprint + Dish?, Sprint Gets Majority Control over Clearwire, Sprint Won’t Buy Clear – For Now, Clearwire Cuts TD-LTE Deployment,