Straight Path Communications (NYSEMKT:STRP) is on the move again, up 8.2% premarket, after saying it's gotten an unsolicited offer that constitutes a "superior proposal" to its agreement to be acquired by AT&T (NYSE:T).
"A multinational telecommunications company" -- all indications are that that's Verizon (NYSE:VZ) -- has offered to acquire Straight Path for $104.64/share, an enterprise value of $1.8B, in an all-stock deal. That's vs. AT&T's offer of $95.63/share.
Premarket quotes at $120 are well above even the new bid of $104.64, suggesting investors are looking toward a bidding war for Straight Path and its valuable millimeter wave spectrum.
Straight Path notified AT&T, which has five business days to match or exceed the new bid.
If the AT&T deal is terminated, Straight Path would owe AT&T a $38M termination fee, but the new bidder has agreed to pay that fee on Straight Path's behalf.
The new bidder's offer is outstanding until 11:59 p.m. ET on May 3.