Verizon Emerges Ahead of Its Rival AT&T in the Race to Acquire Straight Path Communications

Verizon beat out AT&T in an unusual bidding war to acquire Straight Path Communications.

Author:: TheStreet Staff
Publish date:: May 11, 2017 6:54 AM EDT

Shares of Straight Path Communications (STRP) fell 16.9% after TheWall Street Journal reported thatVerizon (VZ) - Get Report has emerged ahead of its rivalAT&T (T) - Get Report in the $3 billion race to acquire the wireless spectrum holder.

Straight Path said Monday that an unnamed suitor had raised its bid for the second time to $184 a share, or $3.1 billion, an approach it deemed superior to a prior agreement with AT&T.

AT&T has until Thursday to respond to the reported bid from Verizon, according to the Journal.

Straight Path shares have been rocketing since AT&T said it would buy the company for $95.63 a share, valuing Straight Path at $1.6 billion on April 10. The company's close prior to the original AT&T deal was $36.48, meaning the stock has more than quintupled since bidding began.

This article was written by a staff member of TheStreet.