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The
$184 per share all-stock offer represents a discount of 17.8
percent to Straight Path's close on Wednesday and has an equity
value of $2.3 billion.
The stock surged nearly five-fold since April 7, a day before
the company first received a $95.63 per share takeover bid from
AT&T Inc.
Straight Path's shares, which had jumped 39 percent since
Verizon made its final bid on Monday, plunged 20 percent to $178
on Thursday, indicating some investors were disappointed with
the deal.
Straight Path, which holds a large trove of 28 GHz and 39 GHz
millimeter wave spectrum used in mobile communications, will
give Verizon an advantage in fifth-generation (5G) network
development.
5G networks are expected to offer faster downloads and boost
internet-reliant products such as self-driving cars.
Straight Path had said on Monday an unnamed telecommunications
company had raised its offer to buy the company. Reuters
reported, citing sources, that the unnamed bidder was Verizon.
Verizon's bid tops AT&T's offer of $95.63 per share, or $1.25
billion, which was announced last month.
Straight Path, which earlier agreed to be bought by AT&T, said
it would terminate the previously announced deal.
Verizon will pay, on behalf of Straight Path, a termination fee
of $38 million to AT&T.
Evercore was financial adviser to Straight Path and Weil,
Gotshal & Manges served as company counsel on the deal.
Debevoise & Plimpton LLP served as counsel to Verizon.
(Reporting by Rishika Sadam in Bengaluru; Editing by Saumyadeb
Chakrabarty)
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