In an announcement with potential 5G spectrum implications, Straight Path Communications said its board has determined that an unsolicited bid from a “multi-national telecommunications” is superior to the one it had already received from AT&T.
The new bid is for 100% of the issued and outstanding shares of Straight Path for $104.64 per share, or an enterprise value of $1.8 billion. AT&T had already put in a bid of $95.63 per share, reflecting an enterprise value of $1.6 billion, that would be paid using AT&T stock.
Straight Path shot up $14.68 (13.24%) to $125.57 each in late morning trading Tuesday.
Article continues belowStraight Path didn’t identify the unsolicited bidder by name, but Reuters reported on April 13 that Verizon was thinking about coming in with a larger, counter bid.
RELATED: Straight Path Stock Spikes on Verizon Bid Report
Straight Path is a holder of 39 GHz and 28 GHz millimeter wave spectrum that could come in handy for 5G deployments.
RELATED: AT&T Eyes More 5G Spectrum with Straight Path Buy
Straight Path said it has notified AT&T that it has five business days to negotiate a possible amending to its agreement that matches or exceeds the new one. Straight Path said the new bidder has stated that its offer will remain outstanding until 11:59 p.m. ET on May 3, 2017.
Under the AT&T deal, Straight Path is required to pay a $38 million break-up fee to AT&T if the deal is scuttled.
