DISH Brushes Off Sprint Lawsuit As a Diversion

DISH Network (NASDAQ: DISH  ) said in a statement today that Sprint Nextel's (NYSE: S  ) lawsuit filed yesterday to derail DISH's proposed buyout of Clearwire (UNKNOWN: CLWR.DL  ) 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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  • Report this Comment On June 19, 2013, at 3:29 AM, nivegulu wrote:

    My comment on the YMB.;_ylt=AsU_aMjCKzJ...

    Also, reiterating CLWR's intrinsic value confirmed.


    "According to the Furchtgott-Roth Report, Sprint's $2.97 per share offer for

    Clearwire represents a value of just $0.11 per MHz pop for Clearwire's

    spectrum and significantly understates the current value of Clearwire's unique

    spectrum holdings. The Report says that applying reasonable assumptions to the

    multi-customer business plan presented by two firms advising the Clearwire board

    results in a valuation between $9.54 and $15.50 per share. These share price

    values correspond to spectrum prices between $0.31 and $0.50 per MHz pop.

    The Sprint offer also fails to account for Clearwire's unique ability to deploy

    wireless technology that offers far greater future value than the technology

    currently offered by most major U.S. carriers, the study says. In his report,

    Dr. Furchtgott-Roth explains that TDD-LTE technology allows for higher download

    speeds and efficient spectrum utilization. He also notes that "the only band of

    spectrum in the United States that can be developed for TDD-LTE services is

    the 2.5 GHz band largely controlled by Clearwire." "

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Related Tickers

12/31/1969 7:00 PM
CLWR.DL $0.00 Down +0.00 +0.00%
Clearwire Corp CAPS Rating: **
DISH $54.60 Down -0.44 -0.80%
DISH Network CAPS Rating: **
S $6.57 Down -0.10 -1.43%
Sprint CAPS Rating: **