Sprint Raises Hurdles to Dish Offer for Clearwire

Sprint Nextel Corp. (S) sent a letter to Clearwire Corp.'s (CLWR) board stating that some provisions of Dish Network Corp.'s (DISH) proposal to acquire the broadband provider include issues that potentially could block the deal, including needed approval by Sprint and legal concerns.

Clearwire shares were down 2% at $4.39 in recent premarket trading.

Sprint in the letter on Monday stated that it won't vote in favor of the proposed deal and plans to enforce its legal and contractual rights. Sprint also stated that it remains committed to its own planned merger deal with Clearwire. Sprint already owns about 50% of the broadband provider, but needs a majority of the minority holders to approve the tie-up for it to move forward.

A Clearwire spokesman wasn't immediately available to comment on Sprint's letter.

At issue is a provision requiring the nomination of three Dish candidates for the Clearwire board, a provision that aims to give Dish the right to veto certain actions by Clearwire and certain Sprint rights as a Clearwire shareholder.

Dish Network has made competing bids for both Clearwire and Sprint while both have pursued other suitors, and Dish most recently came out with a raised bid for Clearwire less than 48 hours before a scheduled shareholder vote on the Sprint deal.

Clearwire had confirmed late Thursday that it would postpone the meeting until June 13, giving it time to review the new Dish offer. Dish's latest bid for Clearwire was for $4.40 a share, well above Sprint's already improved offer of $3.40.

Sprint shares were down by a penny at $7.29 in recent premarket trading. Dish shares closed Friday at $38.54 and were inactive premarket.

Write to Tess Stynes at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires