In an announcement with potential 5G spectrum implications, Straight Path Communications said its board has determined that an unsolicited bid from a “multi-national telecommunications” is superior to the one it had already received from AT&T.
The new bid is for 100% of the issued and outstanding shares of Straight Path for $104.64 per share, or an enterprise value of $1.8 billion. AT&T had already put in a bid of $95.63 per share, reflecting an enterprise value of $1.6 billion, that would be paid using AT&T stock.
Straight Path shot up $14.68 (13.24%) to $125.57 each in late morning trading Tuesday.
Straight Path didn’t identify the unsolicited bidder by name, but Reuters reported on April 13 that Verizon was thinking about coming in with a larger, counter bid.
RELATED: Straight Path Stock Spikes on Verizon Bid Report
Straight Path is a holder of 39 GHz and 28 GHz millimeter wave spectrum that could come in handy for 5G deployments.
Straight Path said it has notified AT&T that it has five business days to negotiate a possible amending to its agreement that matches or exceeds the new one. Straight Path said the new bidder has stated that its offer will remain outstanding until 11:59 p.m. ET on May 3, 2017.
Under the AT&T deal, Straight Path is required to pay a $38 million break-up fee to AT&T if the deal is scuttled.