Straight Path Receives Buyout Bid Nearly Double Its Deal With AT&T

By Tomi KilgoreMarketsMarketWatch Pulse

Straight Path Communications Inc.'s stock was indicated up over 16% in premarket trade Monday, after the telecommunications company said it determined the $184-per-share buyout bid it received from an undisclosed "multi-national telecommunications company" was "superior" to the merger agreement it made with AT&T Inc. made in early April. The deal with AT&T was for $95.63 a share, paid using AT&T stock, and valued Straight Path at $1.6 billion. The new bid is valued at $3.1 billion. AT&T has the option for the next three days to match or exceed the new bid, which will remain until 11:59 p.m. ET on May 10. If the AT&T deal ends, Straight Path would pay a $38 termination fee. Straight Path's stock has soared nearly five fold year to date through Friday, while AT&T shares have lost 9.3% and the S&P 500 has gained 7.2%.

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