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Not so fast: AT&T could be outbid on latest acquisition

AT&T (NYSE: T) could be outbid on a $1.6-billion deal to buy Straight Path Communications, a major owner of spectrum licenses.

And the culprit could be none other than AT&T’s top rival, Verizon (NYSE: VZ), according to a report from Reuters.

AT&T and Straight Path announced on Monday that the two sides have come to terms. The spectrum AT&T would gain is crucial in a world in which data use is booming on mobile platforms, a trend that will only multiply under the next generation of wireless, known as 5G.

But in a regulatory filing on Thursday, Straight Path said it has received a letter from a third party that says is “evaluating a topping bid that it believes would be more favorable to your shareholders than your current transaction.” The third party had been bidding with Straight Path prior to the company’s announced deal with AT&T, according to the filing.

“There can be no assurances that any such offer will be received or, if received, that the Board will determine that such offer constitutes a Superior Proposal within the meaning of the Merger Agreement,” the filing reads.
AT&T’s deal has a total value of $1.6 billion, with AT&T paying Straight Path $1.25 billion. The Dallas telco would pay $95.63 a share, a 200-percent premium over Straight Path’s January stock price of $31.41 a share, which was before the company settled a dispute with the Federal Communications Commission.

Straight Path shares shot up upon news of the acquisition on Monday, closing the day at $91.60.

AT&T’s play for the spectrum owner comes during the same week that the FCC separately announced winners from its auction of spectrum airwaves.

T-Mobile was the most aggressive in the auction, winning $8 billion in spectrum. AT&T, which is acquiring spectrum in association with its government contract to build out a network for first responders, paid about $910 million for airwaves during the auction.




http://www.bizjournals.com/dallas/news/2017/04/14/not-so-fast-at-t-could-be-outbid-on-latest.html?ana=yahoo&yptr=yahoo