Straight Path shares rose more than 32% in mid-day trading Monday after the holder of valuable spectrum said its board has determined that a rival bid from a “multi-national telecommunications company,” speculated to be Verizon Communications, is superior to the one it had in hand from AT&T.
The rival bid is for 100% of issued and outstanding shares of Straight Path for $184 per share, an all-stock deal that carries enterprise value of about $3.1 billion. That superseded an early, unsolicited offer on May 1 from the somewhat cloaked rival bidder of $135.96 per share, Straight Path said.
AT&T’s original offer is for $95.63 per share, reflecting an enterprise value of $1.6 billion, to be paid using AT&T stock.
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(Photo via Bill Bradford's Flickr. Image taken on March 4, 2016 and used per Creative Commons 2.0 license. The photo was cropped to fit 9x16 aspect ratio.)