HOUSTON, April 8, 2013 /PRNewswire/ -- A new study by Harold Furchtgott-Roth, a former commissioner of the Federal Communications Commission, disputes the conclusions of a study commissioned by Sprint Nextel Corporation and a separate institutional equity research report published by DA Davidson about the value of Clearwire Corporation (NASDAQ: CLWR).
Furchtgott-Roth today said that the Sprint study authored by Dr. Kostas Liopiros -- "Value and Utility of the U.S. 2.5 Ghz Spectrum Band" -- is "unreliable." He said it misstates the value of Sprint's offer for Clearwire and is inconsistent with the public representations of Clearwire officers and the publicly reported financial statements of Clearwire. The Furchtgott-Roth report was funded by Crest Financial Limited, the largest minority shareholder of Clearwire, and was filed by Crest with the FCC and the Securities and Exchange Commission today.
According to Furchtgott-Roth: "Throughout the Liopiros Report are statements that implicitly call into question the integrity and reliability of the financial statements of Clearwire. The Liopiros Report states that the value of higher frequency spectrum is less than lower frequency spectrum; the Clearwire financial statements make no such adjustments. The Liopiros Report states that EBS spectrum is worth substantially less than BRS spectrum; the Clearwire financial statements do not treat its EBS and BRS spectrum differently. The Liopiros Report states that unpaired spectrum is worth substantially less than paired spectrum; the Clearwire financial reports make no such distinction or adjustment in value. An analysis of the Clearwire financial statements reveals a value of the Sprint offer of $2.97 per share corresponds to a value of $0.11 per Mhz pop. The Liopiros Report states the value is $0.21 per Mhz pop."
Furchtgott-Roth further said that the DA Davidson report -- Institutional Equity Research, "Clearwire Corp.," dated April 1, 2013 – repeats the mistaken valuation of the Sprint offer and makes the error of valuing the Sprint offer at $0.21 or even $0.22 per Mhz pop, primarily by not excluding the value of other assets. Furchtgott-Roth said that the DA Davidson report "seems to take a rather unsubstantiated and dim view of the accuracy of Clearwire's financial records and any report based upon them."The Furchtgott-Roth study can be found at http://www.bancroftpllc.com/crest/. About Crest Financial Limited Crest Financial Limited is a limited partnership under the laws of the State of Texas. Its principal business is investing in securities.