Straight Path said it has received a revised offer from a “multi-national telecommunications company” of USD 135.96 per share, translating into an enterprise value of USD 2.3 billion, which it says constitutes a “superior” offer to the one it received from AT&T. The anonymous bidder previously made an offer in April at USD 104.64 per share, reflecting an enterprise value of USD 1.8 billion. The new offer would also be paid all in stock.
AT&T had agreed to acquire Straight Path in an all-stock transaction for USD 95.63 per share, reflecting an enterprise value of USD 1.6 billion and paid in stock. If Straight Path goes with the new bid, it will have to pay a termination fee of USD 38 million to AT&T. The buyer has agreed to pay the fee. Straight Path has notified AT&T of the latest offer, which will remain outstanding until the end of the day on 8 May.
AT&T announced earlier this month the agreement to acquire Straight Path in order to gain access to additional spectrum seen as key for developing 5G. The latter later disclosed that another party was considering making a bid. People familiar with the matter told Reuters that the other potential bidder was Verizon.
