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).
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.
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.