DISH Brushes Off Sprint Lawsuit As a Diversion
DISH Network said in a statement today that Sprint Nextel's lawsuit filed yesterday to derail DISH's proposed buyout of Clearwire is a diversionary tactic used to force Clearwire shareholders into accepting less than what their shares are worth.
"Sprint's lawsuit is a transparent attempt to divert attentional from its failure to deal fairly with Clearwire's shareholders, as well as to exploit its majority position to block Clearwire's shareholders from receiving a fair price for their shares."
In its lawsuit, Sprint called DISH's tender offer "structurally and actionably coercive" and is seeking "declaratory, injunctive, compensatory, and other relief" from DISH because its bid violates certain rights of Sprint and also created "tortious interference with Clearwire's performance of its merger agreement with Sprint."
Last week, Clearwire's board of directors unanimously recommended shareholders accept DISH's offer of $4.40 a share. This was a reversal of the board's previous recommendation to accept Sprint $3.40-a-share offer.
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