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Straight Path confirms ‘superior proposal’ as mystery bidder raises offer to USD3.1bn

9 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 third time, increasing the pressure on original bidder AT&T Inc. The new offer, which is valued at USD184.00 per share (reflecting an enterprise value of approximately USD3.1 billion) trumps the mystery bidder’s 3 May offer of USD135.96 per share (USD2.3 billion), which itself surpassed its own unsolicited 24 April offer of USD104.64 per share (USD1.8 billion); the original 9 April offer from AT&T was valued at USD95.63 per share (USD1.6 billion).

Straight Path has notified AT&T of the Straight Path board’s determination that the new offer represents a ‘superior proposal’, and the US telco now has three business days to negotiate a possible amendment of that agreement to match or exceed the bidder’s offer. 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

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