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.