Straight Path gets new bid, valuing firm at over USD 3 bln

News Wireless United States 8 MEI 2017
Straight Path gets new bid, valuing firm at over USD 3 bln

A multi-national telecom company has made a new bid for Straight Path, at USD 184 per share, to be paid all in stock. The bid values the company at USD 3.1 billion. The same bidder had made an offer of USD 135.96 per share for the company in May, representing an enterprise value of USD 2.3 billion. The latest bid is almost double the one made even earlier by AT&T at USD 95.63 per share. Straight Path said the latest offer constitutes a “superior” offer to the AT&T one.

The buyer has agreed to pay any fee that might need to be paid to get out of the AT&T deal. The unnamed bidder said the offer will remain outstanding until almost midnight on 10 May.

People familiar with the matter told Reuters earlier that the other potential bidder was Verizon.

Categories:

Mobile

Companies:

Verizon

Countries:

United States

Tags:

Corporate strategy, M&A buyouts & divestments

Related Articles

UNITED STATES 1 MRT 2018

Verizon pays USD 600 mln penalty to FCC for Straight Path licence violations

Verizon has paid a fine of USD 600 million for the acquired company Straight Path Communications to the Federal Communications Commission. The penalty dates from before Verizon's takeover of the company and is for Straight Path failing to use its allocated spectrum resources. 

UNITED STATES 11 MEI 2017

Verizon wins bidding war, gets Straight Path for USD 3 bln

Straight Path has accepted the USD 184 per share bid made by Verizon Communications earlier this month as an unnamed bidder, which values the company at USD 3.1 billion. The all-stock transaction is intended to qualify as a tax-free reorganisation. Verizon will pay the termination fee to AT&T of USD 38 million. The acquisition has been approved by the board of directors of both Straight Path and Verizon and should close within nine months, subject to FCC review.

UNITED STATES 3 MEI 2017

Unnamed operator goes even higher for Straight Path

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.

UNITED STATES 17 APR 2017

Verizon mulls higher bid for Straight Path - report

Verizon is considering making a rival offer for Straight Path Communications, topping AT&T's USD 1.25 billion bid, people familiar with the matter told Reuters. Straight Path said in a regulatory filing that a third party, which it did not name, was evaluating making an offer higher than AT&T's bid. The party had also been bidding to acquire the company before AT&T made its offer, Straight Path said. Verizon declined to comment.

UNITED STATES 10 APR 2017

AT&T acquires Straight Path, with spectrum, for USD 1.25 bln

AT&T has agreed to acquire Straight Path Communications for USD 1.25 billion worth of stock, in a deal that will boost the company's holdings in mmWave spectrum and support the development of 5G technologies. The total deal is valued at USD 1.6 billion, including liabilities and payments to be remitted to the FCC according to Straight Path's January 2017 consent decree.

Just In

19 DEC 16:42

SLT-Mobitel launches 5G network in Sri Lanka

19 DEC 16:19

Dialog Axiata launches 5G network, connects 1.5 million subscribers

19 DEC 15:56

UK govt to ban AI-enabled nudification apps to protect women, girls

19 DEC 15:42

3 UK launches last-minute Christmas sale

Commentary

13:56

Video market set for slower growth ahead

11:38

Netflix buys Warner Bros to deepen content catalogue

11:11

KPN's mixed performance in Q3 raises questions for strategy day

15:26

Stock markets breaking records but what happened to Odido's IPO plans?

Background

01:04

The week in telecom: Wi-Fi bolt-ons take off to boost broadband growth, video market works on consolidation

01:39

The week in telecom: Netflix wins bidding for Warner Bros, Apple poaches new execs, Samsung debuts trifold

13:51

Proximus vs. Telenet: Proximus performs better in Q3 while Telenet uses up cash

14:16

Proximus Domestic still struggling with low margins

Complete profile

Before downloading the whitepaper, we would like to ask you to complete your profile with company and position. After confirming you will receive the white paper.