AT&T Inc to buy Straight Path Communications Inc for $1.25 billion in an all-stock deal

News Hour:

U.S. wireless carrier AT&T Inc said on Monday it would buy Straight Path Communications Inc, a holder of licenses to wireless spectrum, for $1.25 billion in an all-stock deal.

The No.2 U.S. carrier said it would offer $95.63 per share, a premium of 162.1 percent to Straight Path’s Friday close. Straight Path’s shares were trading at $93.26 premarket, while AT&T’s shares were marginally down, reports Reuters.

Straight Path, one of the largest holders of 28 GHz and 39 GHz millimeter wave spectrum used in mobile communications, had said in January it was hiring investment bank Evercore Partners to help explore strategic alternatives, including a sale of assets.

The company had also agreed in January to pay the U.S. Federal Communications Commission (FCC) $15 million to settle a federal probe of claims that Straight Path had submitted false data to renew airwave licenses.

The deal with AT&T is supported by Straight Path’s majority shareholder, Howard Jonas, who has entered into a voting agreement with the carrier in support of the transaction.

The tax-free deal, valued at $1.6 billion, includes liabilities and amounts to be remitted to the FCC according to the January settlement terms. Evercore advised Straight Path on the deal and Weil, Gotshal & Manges LLP provided legal counsel.


This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments

Translate this News

Join the Facebook Group

Click here to join the Facebook group of News Hour

Popular Posts

Sacred Games exposes Rajshri Deshpande nude [video]
Paperfly launches delivery services covering 64 districts in Bangladesh
The miracle of Hyperbaric Oxygen Therapy (HBOT) and its potential in Bangladesh
Google to move into banking by offering current accounts
One child dies of pneumonia every 39 seconds
Man damages his own brain to forget the Infinity War spoilers he saw before


News of the Month

April 2017
« Mar   May »
Scroll Up
%d bloggers like this: