The unnamed bidder initially made a $1.8 billion bid for Straight Path Communications Inc. on April 25. AT&T Inc. (NYSE: T) initially bid $1.6 billion for the spectrum holder on April 10. (See AT&T to Flash $1.6B for Straight Path 5G Spectrum and Did Verizon Outbid AT&T for Straight Path?)
Straight Path says AT&T now has three business days to top the revised offer. It also says the unnamed bidder will pay a $38 million termination fee to AT&T if the Straight Path Board terminates the AT&T merger agreement to go with the the other bidder.
The bidders are trying to gain access to Straight Path's holdings of 39GHz and 28GHz spectrum. This millimeter wave bandwidth will be used for gigabit-plus 5G services, which are expected to appear from 2018 onwards. (See AT&T & Straight Path: What's It All Mean for US 5G?)
Straight Path's shares were trading up $43.51 -- or 26.94% -- at $205.00 on Monday morning.
— Dan Jones, Mobile Editor, Light Reading