A jilted Sprint sues Dish, claiming its offer for Clearwire is illegal

Dish Network may have won over Clearwire board, but Sprint isn’t giving up on Clearwire without a legal fight. Sprint filed a lawsuit on Monday asking a Delaware state court to stop Dish’s investment in Clearwire.

Sprint has already claimed that Dish’s offer to take a 25 percent or greater stake in Clearwire is illegal under the corporate laws of Delaware, where Clearwire is incorporated. It now seems prepared to back up its claims before a judge.

Sprint is still Clearwire’s largest stakeholder, even though it doesn’t have direct control of the company. Sprint is claiming that Clearwire can’t accept an offer from Dish without its approval — approval it’s not prepared to give. Sprint also claimed that Dish is demanding veto powers and board seats that Clearwire has no right to give due to its equity holder’s agreement.

Sprint has been trying to buy up control of Clearwire since December, but it found thwarted by Dish at every turn. Clearwire originally backed Sprint’s bid, but in a surprising turn last week it switched allegiances.

Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.

  • The future of mobile: a segment analysis by GigaOM Pro
  • Social 2013: The enterprise strikes back
  • A look back at mobile in the third quarter


GigaOM