Straight Path decides revised offer is 'superior'

Straight Path Communications Inc. (NYSE MKT: STRP) board of directors has determined that a revised offer from a multi-national telecommunications company (the “Bidder”) to acquire 100% of the issued and outstanding shares of Straight Path for USD 184.00 per share (reflecting an enterprise value of approximately USD 3.1bn), which will be paid in Bidder stock in an all-stock transaction constitutes a “Superior Proposal” as defined in Straight Path´s previously announced definitive agreement and plan of merger with AT&T Inc. (“AT&T”) (NYSE: T) and Switchback Merger Sub Inc., the company said.

The Bidder previously submitted an unsolicited offer on May 1, 2017 to acquire 100% of the issued and outstanding shares of Straight Path for USD 135.96 per share (reflecting an enterprise value of USD 2.3bn), which has been superseded by the revised offer.

Straight Path has notified AT&T of the Straight Path board´s determination and, pursuant to the AT&T Merger Agreement, AT&T has the option for the next three business days to negotiate a possible amendment of that agreement to match or exceed the Bidder´s offer.

Straight Path holds an extensive portfolio of 39 GHz and 28 GHz wireless spectrum licenses. Straight Path is developing next generation wireless technology through its Straight Path Ventures subsidiary. Straight Path holds licenses and conducts other business related to certain patents through its Straight Path IP Group subsidiary.