Sprint takes legal action to halt DISH's acquisition of Clearwire
Sprint has filed a law suit to prevent the takeover of Clearwire by DISH after it lost out to the company for taking control of Clearwire.
Sprint has filed a lawsuit in the Delaware Court of Chancery on monday claiming that the takeover deal valued at $6.3 billion violates the rights of Sprint and other Clearwire shareholders. It also claimed that the takeover deal is against Delaware law.
"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.
Sprint has a 50.2 per cent stake in the wireless company and was looking to acquire the remaining stake for $2.2 billion or about $2.97 per share in December. Sprint would have emerged as the largest owner of wireless spectrum in the country. Dish has countered the bid with its own offer of $3.30 per share or $5.15 billion.
Clearwire has licensed 133 MHz compared to Verizon's 83 MHz, AT&T's 77 MHz, Sprint's 51 MHz and T-Mobile's 48 MHz, according to a 2010 study by the Federal Communications Commission and Citigroup. Clearwire is a leading player in the country with 4G telecom spectrum.