Just when you thought that this whole Sprint-Clearwire-Dish Network love triangle couldn't get any crazier, well, it did. Sprint announced tonight that it has filed a lawsuit against both Clearwire and Dish, claiming that Dish's recent bid of $4.40 per share for Clearwire violates both Delaware law and the rights of Sprint and Clearwire's other investors under Clearwire's charter and the Equity Holders Agreement. Sprint's complaint with the Delaware Court of Chancery.
In its complaint, Sprint says that it feels Dish has attempted to fool Clearwire's shareholders into thinking that its bid is actionable in an attempt to gain Clearwire's spectrum and block Sprint's deal with Clearwire. Sprint outlines a number of arguments as to why Dish and Clearwire should be blocked from reaching an agreement, including one that says that under Clearwire's charter and the Equity Holders Agreement, Dish's offer can't be completed without approval from both Comcast and 75 percent of Clearwire shareholders, the latter of which is unlikely to happen since Sprint holds a 50 percent stake in Clearwire.
Sprint is asking that the court block the completion of Dish's offer for Clearwire and revoke parts of their agreement. The carrier is also seeking "declaratory, injunctive, compensatory and other relief." Whether or not Sprint gets all of that remains to be seen, but considering that Sprint and SoftBank are hoping to gain Clearwire's spectrum to aid in their expansion efforts (if their merger reaches completion, that is), it's no surprise to see that Sprint is putting up quite a fight for Clearwire. Stay tuned and I'll update you with more on this increasingly dramatic situation as I get it.