Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
UCS Invicta: Integrated Flash
Deploy flash memory technology to
deliver peak workload performance.

Find out more>>
Mobile Tech
Next Generation Data Center Is Here!
Average Rating:
Rate this article:  
Dish Drops Its Pursuit of Sprint, Clearing Way for SoftBank
Dish Drops Its Pursuit of Sprint, Clearing Way for SoftBank

By Jennifer LeClaire
June 19, 2013 11:07AM

    Bookmark and Share
"We will consider our options with respect to Sprint, and focus our efforts and resources on completing the Clearwire tender offer," Dish said in a statement. But Dish won't get Clearwire, either, if Sprint has anything to say about it. Sprint has filed a complaint in the Delaware Court of Chancery against Dish and Clearwire asking the court to block the sale.
 


In a telecom drama that's getting nastier by the day, Dish Network has pulled its proposal to merge with Sprint Nextel. That paves the way for SoftBank Corp. to make final its acquisition of the wireless carrier in the weeks ahead.

Last week, SoftBank raised its offer from $20.1 billion to $21.6 billion. SoftBank has proposed to grab 70 percent of the company for that price. Sprint's board of directors has stayed the course with its recommendation for stockholders to vote in favor of the transaction.

"While Dish continues to see strategic value in a merger with Sprint, the decisions made by Sprint to prematurely terminate our due diligence process and accept extreme deal protections in its revised agreement with SoftBank, among other things, have made it impracticable for Dish to submit a revised offer by the June 18th deadline imposed by Sprint," Dish said in a statement. "We will consider our options with respect to Sprint, and focus our efforts and resources on completing the Clearwire tender offer."

Taking It to Court

But Dish won't get Clearwire, either, if Sprint has anything to say about it. Sprint on Monday filed a complaint in the Delaware Court of Chancery against Dish and Clearwire asking the court to block the sale. Sprint claims the transaction violates Delaware law and the rights of both Sprint and Clearwire's other strategic investors. Sprint's lawsuit also seeks to rescind certain parts of the tender offer agreement and seeks declaratory, injunctive, compensatory and other relief.

In the complaint, Sprint alleges that Dish has repeatedly attempted to fool Clearwire's shareholders into believing its proposal was actionable in an effort to acquire Clearwire's spectrum and to obstruct Sprint's transaction with Clearwire. Dish also responded to the lawsuit:

"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 is confident that its superior offer, which has been unanimously recommended by the Clearwire Board, including the majority appointed by Sprint, will be upheld and Clearwire shareholders will be free to realize the 29 percent premium represented by the Dish offer."

Like Crazed Teenagers

Jeff Kagan, an independent telecom analyst, told us the Sprint bidding has been like watching a group of teenagers falling in and out of love with each other. In other words, it's been a little crazy.

Kagan also noted good news and bad news in the end of the wrangling. The good news: the Sprint-SoftBank deal is now on course to be completed in the next few weeks. The bad news is we still don't know what the next Dish move is.

"Will they fight for Clearwire? Sprint owns 51 percent. Will they try to do a deal with the new Sprint-SoftBank?" Kagan asked. "Who knows at this point? The big question is what else is up their sleeve? We'll just have to wait and see. I don't see Dish going away this quietly."

Either way, it looks like Sprint and SoftBank will get together. Now, Kagan said, we will see how the Japanese wireless carrier will change the U.S. wireless market.
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Mobile Tech
1.   Android Hits 85% Market Share
2.   BBM Now Available on Windows Phone
3.   Smartphone Slowdown Hits Samsung
4.   Virgin Mobile Offers Custom Plans
5.   Asana Revamps Mobile App


advertisement
Android 'Fake ID' Puts Millions at Risk
Users: stick to apps from Google Play.
Average Rating:
Researchers Tout Battery Breakthrough
Lithium anode could triple capacity.
Average Rating:
Smartphone Slowdown Hits Samsung
Reports its worst quarter in two years.
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Ruling Against Microsoft Raises E-Mail Privacy Concern
Microsoft has been ordered to hand over e-mails to law enforcers in the United States as part of a criminal investigation, even though the e-mail is stored at a data center in Dublin,Ireland.
 
Twitter Buys Password Manager Startup Mitro
Following on the heels of another acquisition earlier this week, Twitter is adding to its fold a password-manager security startup called Mitro, which in turn is releasing its code as open source.
 
Government Requests for Customer Data Skyrocket
Requests for customer data from the government jumped 50 percent in the first half of 2014, according to Twitter, which received more than 2,000 requests for user info from gov't agencies.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | CRM Systems | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.