Verizon Wins Bidding War for Straight Path Communications -- Update
11 Maggio 2017 - 1:36PM
Dow Jones News
By Thomas Gryta and Drew FitzGerald
Verizon Communications Inc. will buy Straight Path
Communications Inc. for about $3.1 billion, after beating rival
AT&T Inc. in an unusually intense bidding war for the
wireless-spectrum holder.
Straight Path holds licenses to use high-frequency radio waves
that some engineers think could form the backbone of
next-generation networks. The Wall Street Journal first reported
news of the new deal Wednesday night.
Verizon will pay $184.00 a share in Verizon stock for the
company.
AT&T reached a deal with the company last month to buy
Straight Path for $1.6 billion in stock, including liabilities. But
the agreement set off a bidding war with a telecom rival that the
companies declined to identify but people familiar with the matter
said was Verizon. Verizon agreed to pay $3.1 billion in stock for
the company, an offer that AT&T has declined to match, Straight
Path said. Verizon will pay on behalf of Straight Path a
termination fee of $38 million to AT&T.
Straight Path, which had just nine employees as of October, was
worth about $400 million two months ago. The Glen Allen, Va.,
company acquired most of its wireless spectrum more than 15 years
ago but was penalized this year by regulators for failing to build
a working network.
Shares of Straight Path closed Wednesday at $223.79 on the New
York Stock Exchange, well above the $184-a-share takeover offer.
The shares were trading around $35 in March.
--Austen Hufford contributed to this article.
Write to Thomas Gryta at thomas.gryta@wsj.com and Drew
FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
May 11, 2017 07:21 ET (11:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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