Is Sprint?s price for Clearwire stock too lowball?

As Speed Matters reported earlier in the year, several institutional investors in Clearwire have protested openly and loudly that the company was considering selling its stock to Sprint at fire-sale prices.

Now, former FCC commissioner Dr. Harold Furchtgott-Roth and his associates have released a detailed report – An assessment of the economic and industry reasonableness of Sprint’s offer for Clearwire – that supports those contentions. The Furchtgott-Roth report is in support of Crest Financial Limited’s filing to stop the sale.

At issue is the value of Clearwire’s considerable spectrum holdings and the desire of the company management to sell its stock, with the spectrum rights, for a price last estimated at $2.97 a share. Furchtgott-Roth contends that Clearwire would raise more money by selling its spectrum to multiple customers rather than just to Sprint.

Crest investors are already crying foul over the sale. As Wireless Week writes:

“In its ex parte filing, Crest points to a disregard for public interest on Sprint’s part based on its pursuit of unilateral control of Clearwire, which Crest asserts is being advanced by offering Clearwire executives lucrative “golden parachute” compensation arrangements.”

Harold Furchtgott-Roth was an FCC commissioner from 1997 to 2001.

Yet another Clearwire investor protests Sprint deal to FCC (Speed Matters, Jan. 28, 2013)

An assessment of the economic and industry reasonableness of Sprint’s offer for Clearwire (FCC submission by Harold Furchtgott-Roth, Mar. 12, 2013)

Former FCC Commissioner Claims Clearwire Spectrum Undervalued in Sprint Deal (Wireless Week, Mar. 12, 2013)