Straight Path Stock Spikes on Verizon Bid Report

AT&T has inked deal valued at $1.6B to acquire holder of spectrum with 5G potential
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Verizon is thinking about swooping and making a counter bid for Straight Path Communications, a holder of 39 GHz and 28 GHz millimeter wave spectrum that could come in handy for 5G deployments, Reuters reported Friday (April 13).

RELATED: AT&T Eyes More 5G Spectrum with Straight Path Buy

Shares in Straight Path were up $19.72 (21.5%), to $111.42 each, Monday.

Last week, AT&T announced an all-stock deal for Straight Path carries a total value of $1.6 billion, or $95.63 per share. Straight Path shareholders are to receive $1.25 billion, paid using AT&T stock.

RELATED: Verizon Exec: ‘Meaningful’ 5G Deployments to Start in 2018

Straight Path disclosed in an 8-K filing April 13 that it had received a letter from an unnamed third party that had been bidding to acquire the Straight Path before it entered the AT&T deal. That unidentified party, now reported to be Verizon, told Straight Path that it is “evaluating a topping bid that it believes would be more favorable to your shareholders than your current transaction,” the filing noted.