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A woman talks on her phone as she walks past T-mobile and Sprint wireless stores in New York. REUTERS Brendan McDermid

Crest Financial files lawsuit against Clearwire, Sprint

12/12/2012 COMMENTS (0)

By Sruthi Ramakrishnan and Vishal Krishnan

Dec 12 (Reuters) - Clearwire Corp investor Crest Financial filed a lawsuit against the company and majority stakeholder Sprint Nextel Corp in a bid to prevent a potential deal between the wireless providers.

Sprint is in talks with Intel Corp and Comcast Corp to buy out their stakes in Clearwire, Reuters reported on Tuesday quoting sources. Sprint currently holds 50.45 percent of Clearwire shares.

Crest Financial, which owns a 6.62 percent stake in Clearwire, said in its suit that Clearwire abetted its fiduciary duties by allowing Sprint to "extract the value of Clearwire's high-speed, broadband spectrum to the detriment of Clearwire's minority shareholders."

The lawsuit, filed in the Delaware Court of Chancery, requested expedited consideration of the complaint by May 2013.

Both Sprint and Clearwire declined to comment.

Crest Financial said it was seeking injunctive relief against "Sprint's pending merger with Softbank Corp and against Sprint's interference with Clearwire's previously announced plans to raise funds and build out its network".

Crest Financial also intends to petition the Federal Communications Commission (FCC) to deny the Sprint-Softbank merger under its current structure, it said in a statement.

Sprint last month asked the FCC for approval of its agreement to sell 70 percent of the company to Japan's Softbank.

Some minority Clearwire shareholders have publicly expressed concerns over a potential deal with Sprint, suggesting that Clearwire should look at other options.

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