Straight Path Communications has revealed that its board has recommended accepting an ‘unsolicited offer from a multi-national telecommunications company’, just a couple of weeks after A&T Inc. announced its intention to purchase the Virginia-based operator, which holds a nationwide portfolio of mmWave spectrum, including 39GHz and 28GHz licences.
In a press release Straight Path confirmed that the mystery bidder – which Reuters, citing unnamed sources, has claimed is Verizon – will acquire 100% of the former’s issued and outstanding shares for just under USD105 per share (reflecting an enterprise value of USD1.8 billion), to be paid in bidder stock in an all-stock transaction. By comparison, AT&T had offered USD95.63 per share, also in an all-stock deal.
Straight Path confirmed that it has notified AT&T of its board’s determination, while noting that, pursuant to the merger agreement with that company, AT&T now has five business days to match or exceed the rival bid. Meanwhile, with Straight Path required to pay a USD38 million termination fee to AT&T should it opt to move forward with the newer offer, it has the mystery bidder has agreed to pay the this on Straight Path’s behalf.