Straight Path Says AT&T Has 5 Days To Match a 'superior' Buyout Bid It Received

Shares of Straight Path Communications Inc. rallied 3.8% in premarket trade Tuesday, after the telecommunications company said it received a buyout bid from a "multi-national telecommunications company" that it deemed a "superior proposal" to the AT&T Inc. agreement entered into earlier this month. Straight Path said the new all-stock bid was for $104.64 a share, or 9.4% above AT&T's all-stock bid of $95.63 a share. Straight Path said AT&T has five business days to to negotiate an amendment to the companies' buyout agreement. Straight Path is still bound by the AT&T merger agreement, which has a $38 million termination fee. AT&T's stock slipped 0.3% in premarket trade. Year to date, Straight Path shares have more than tripled, while AT&T's stock has lost 5.9% and the S&P 500 has gained 6%.