Straight Path Gets $2.3B Offer, Puts AT&T Deal in Question
Wednesday, May 03, 2017 | Comments

Straight Path Communications received a higher offer from a multinational telecommunications company for about $2.3 billion, putting into question AT&T’s April 11 $1.6 billion offer for the millimeter wave (mmWave) spectrum company.

The Straight Path board of directors determined that the revised offer from the new bidder to acquire 100 percent of the shares of Straight Path for $135.96 per share in an all-stock transaction constitutes a “superior proposal” as defined in Straight Path’s previously announced agreement with AT&T.

The bidder previously submitted an unsolicited offer April 24 to acquire Straight Path at an enterprise value of $1.8 billion, which was superseded by the revised offer announced today.

Straight Path notified AT&T of the company board’s determination, and under the AT&T agreement, AT&T has the option in the next three business days to negotiate a possible amendment of that agreement to match or exceed the new bidder’s offer. Straight Path is required, and intends to, negotiate in good faith with AT&T during the negotiation period. The new offer will remain outstanding through May 8.

Under the AT&T agreement, Straight Path is required to pay a $38 million termination fee to AT&T if the Straight Path Board terminates the AT&T deal to enter into an agreement with the bidder. The bidder agreed to pay the termination fee to AT&T on Straight Path’s behalf in such an event. Straight Path would be required to repay the bidder for the AT&T termination fee under certain circumstances in connection with a termination of the bidder’s merger agreement.

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