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.
Forward-looking Statements
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 terminology.
SOURCE Crest Financial Limited