Dish Network has struck back against Sprint claims that the company's offer for Clearwire falls afoul of Delware law and the Clearwire Equityholders’ Agreement.
Sprint has claimed that in the U.S. satellite provider's offer to try and acquire high speed Internet service provider Clearwire for its spectrum resources and subscribers, the company violates Delaware state law. A memo sent to shareholders sid that Dish's proposal would give the company specific governance rights without Sprint stockholder approval, which in turn is illegal and tramples on the existing Equityholders’ Agreement (EHA).
As a result, Sprint says the bid is not "actionable," and the carrier will not vote in its favor or waive shareholder rights.
In a letter addressed to Clearwire Chairman John Stanton, Dish Chairman Charlie Ergen wanted to set the record straight. In order to limit the damage such a claim may cause in relation to other shareholders in Sprint, Ergen said that such accusations are "incorrect and misleading," commenting:
"In light of recent public statements made by Sprint about the Dish proposal that we believe are incorrect and misleading to Clearwire stockholders in several material respects, it is important that we correct the record regarding the Dish proposal We remain confident that the DISH proposal is both actionable and clearly superior to the proposed Sprint merger.
More importantly, it also provides a meaningful alternative to the significant group of your minority stockholders that remain opposed to the Sprint merger while providing a clear path for Clearwire to become a self-sustaining company. We trust that your board of directors and special committee will act to correct the record promptly.
Sprint has proposed a deal worth $3.40 a share to take over the remaining 49 percent of Cleawire the company does not already own. However, Dish has upped its game, enticing shareholders with $4.40 a share, which values the firm at $6.5 billion and is a 29 percent premium on Sprint's deal.