by William White | June 18, 2013 12:38 pm
Sprint (S) has stepped in the way of Dish Network (DISH) and its bid to acquire Clearwire (CLWR).
Dish wants to expand its market beyond its paid television service, but a recently filed lawsuit by Sprint is hindering the process.
Sprint owns a majority of Clearwire stock, and wants to own the rest to gain a better standing against competitors Verizon (VZ) and AT&T (T). Sprint offered Clearwire $3.40 a share, but they were outbid when Dish offered $4.40 a share.
“Sprint believes the transaction violates Delaware law and the rights of both Sprint and Clearwire’s other strategic investors under Clearwire’s charter and under the Equity Holders Agreement (“EHA”)” Sprint explains in a statement.
It further says, “DISH has 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.”
As of midday Tuesday, DISH and S stock were each up 1%. Clearwire stock had fallen 1%.
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