Sprint Files Lawsuit Against Dish, Clearwire to Block Tender Offer

Sprint Nextel has filed a lawsuit against Dish Network and Clearwire in an effort to block the satellite-TV provider's tender offer for Clearwire.

Sprint, which is Clearwire's majority owner, said Dish's tender offer violates corporate law in the state of Delaware, where Clearwire is incorporated. Sprint also said the offer violates the rights of both Sprint and Clearwire's other strategic investors under Clearwire's charter and under previous shareholder agreements. Sprint in its complaint said that under Clearwire's charter and equity holders agreement, Dish's tender offer can't be completed without the approval of holders of at least 75% of Clearwire's outstanding voting securities, nor without the approval of Comcast. Sprint added Dish's tender offer is "unlawfully coercive because it threatens to leave non-tendering shareholders holding shares in a company subject to governance deadlocks or substantial damage awards to Dish" if Clearwire is unable to deliver on promises set forth in its investor rights agreement and a related note purchase agreement.