Aurelius Files Suit to Block Clearwire-Sprint Deal [telecom]

open original image

Aurelius Files Suit to Block Clearwire-Sprint Deal

By Nathalie Tadena

Hedge fund Aurelius Capital Management LP has filed a lawsuit against Clearwire Corp. (CLWR) and Sprint Nextel Corp. (S), claiming the terms of the companies' proposed $2.2 billion merger are unfair to Clearwire's minority shareholders. Aurelius alleges Clearwire's board and Sprint violated their fiduciary duties to the wireless- broadband provider's minority shareholders and called the proposed tie-up a "coercive freeze-out merger."