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.
The price of USD 184 per share implies a premium of 486 percent to the closing price of Straight Path stock on 11 January, the day before the company announced its FCC settlement and strategic alternatives process, and 404 percent premium on 7 April, the day before the AT&T merger agreement went into effect.
Evercore served as exclusive financial advisor to Straight Path and Weil, Gotshal & Manges served as company counsel. Debevoise & Plimpton served as counsel to Verizon.
