Dish Network Corp. (DISH) fired back against Sprint Nextel Corp.
(S), calling a lawsuit filed by Sprint a diversion.
Sprint on Monday filed a suit against Dish in an attempt to
block the satellite-TV provider's tender offer for Clearwire Corp.
(CLWR). Both companies have been fighting for control of the
broadband provider, and Dish has made a separate bid for
Sprint.
Sprint, which is Clearwire's majority owner, said Dish's tender
offer violates corporate law in the state of Delaware, where
Clearwire is incorporated.
"Sprint's lawsuit is a transparent attempt to divert attention
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," Dish
said. "Dish is confident that its superior offer...will be
upheld."
Sprint, which separately agreed to be acquired by SoftBank Corp.
(9984.TO), raised its bid for Clearwire in May to $3.40 a share. A
day before Clearwire's shareholders were to vote on that deal, Dish
raised its own offer to $4.40 a share.
Clearwire recommended shareholders accept the Dish offer. In its
suit, Sprint said Dish has attempted "to fool Clearwire's
shareholders into believing its proposal was actionable."
In the last 12 months, Clearwire's shares have tripled, as
investors hoped for an acquisition.
Clearwire shares were down a penny at $4.62.
Write to Ben Fox Rubin at ben.rubin@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires