Sprint Nextel pushed back on Monday against Dish Network’s attempt to stymie its bid for full control of Clearwire, accusing Dish of breaking Delaware law with its tender offer.
In a letter to Clearwire’s board, Sprint said that Dish’s tender offer of $4.40 a share was not “actionable,†since it broke an existing shareholder agreement at the wireless network operator. That pact applies to Clearwire’s certificate of incorporation and other corporate governance matters.
“Sprint will enforce its legal and contractual rights,†Daniel R. Hesse, the company’s chief executive, wrote in the letter. “Thus, the Dish proposal is not actionable.â€
The letter comes after Dish’s raised offer last week, which trumped Sprint’s $3.40-a-share bid only two days before Clearwire investors were expected to vote. Dish, which is also bidding for Sprint itself, has sought a cellphone network operator to make use of its own wireless spectrum holdings.
Sprint, which already owns more than 50 percent of Clearwire, is seeking to buy full control in a move to bolster its own network expansion efforts. Even if the bid is voted down, Sprint is in line to own more than 65 percent of Clearwire through existing agreements with other major shareholders.
A number of minority investors in Clearwire, however, have protested that Sprint’s approach remains too low.
Shares of Clearwire fell 1.3 percent, to $4.42, in morning trading on Monday.
