Mystery bidder increases Straight Path bid even further

4 May 2017

US-based Straight Path Communications, which holds a nationwide portfolio of 5G-suitable mmWave spectrum, including 39GHz and 28GHz licences, has confirmed that it has received ‘a revised offer from a multi-national telecommunications company’ for a second time, putting further pressure on original bidder AT&T Inc. The new offer, which is valued at USD135.96 per share (reflecting an enterprise value of approximately USD2.3 billion) trumps the bidder’s unsolicited 24 April offer of USD104.64 per share (USD1.8 billion), which itself surpassed the original 9 April offer from AT&T (USD95.63 per share, USD1.6 billion).

At this time, Straight Path notes that it remains subject to the AT&T merger agreement and the company’s board has not changed its recommendation in support of the AT&T transaction. Under the AT&T merger agreement, Straight Path is required to pay a USD38 million termination fee to AT&T if the board terminates the AT&T deal in order to enter into an agreement with the as-yet-unnamed bidder. The bidder has agreed to pay the termination fee to AT&T on Straight Path’s behalf in such event.

Reuters, citing unnamed sources close to the transaction, previously indicated that Verizon Communications was the mystery bidder, although no official confirmation has been forthcoming.

United States, AT&T, Straight Path Communications