|
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.
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.
(Reporting by Aishwarya Venugopal in Bengaluru; Editing by
Shounak Dasgupta)
[© 2017 Thomson Reuters. All rights
reserved.] Copyright 2017 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
 |
|
