New Report by Former FCC Commissioner Refutes Sprint Study on Value of
HOUSTON, April 8, 2013
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.
Important Legal Information
Crest Financial Limited and other persons may be deemed to be participants
(the "Participants") in a solicitation of proxies in respect of the proposed
Merger of clearwire with sprint nextel corporation. The participants intend
to file a proxy statement with the Securities and Exchange Commission. ALL
INVESTORS AND SECURITYHOLDERS OF clearwire are urged to READ THE PROXY
STATEMENT AND all OTHER PROXY MATERIALS WHEN THEY BECOME AVAILABLE BECAUSE
THEY WILL CONTAIN IMPORTANT INFORMATION. Information regarding the
participants and a description of their direct and indirect interests, by
security holdings or otherwise, will be contained in such proxy statement and
OTHER PROXY MATERIALS. UPON REQUEST, THE PARTICIPANTS WILL PROVIDE COPIES OF
THE PROXY STATEMENT at no charge WHEN it becomes AVAILABLE. THE PROXY
STATEMENT AND all OTHER PROXY MATERIALS WILL ALSO BE AVAILABLE AT NO CHARGE ON
THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTP://WWW.SEC.GOV.
Certain statements contained herein are forward-looking statements including,
but not limited to, statements that are predications of or indicate future
events, trends, plans or objectives.Undue reliance should not be placed on
such statements because, by their nature, they are subject to known and
unknown risks and uncertainties.Forward-looking statements are not guarantees
of future activities and are subject to many risks and uncertainties.Due to
such risks and uncertainties, actual events may differ materially from those
reflected or contemplated in such forward-looking statements.Forward-looking
statements can be identified by the use of the future tense or other
forward-looking words such as "believe," "expect," "anticipate," "intend,"
"plan," "should," "may," "will," believes," "continue," "strategy," "position"
or the negative of those terms or other variations of them or by comparable
SOURCE Crest Financial Limited
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