Virginia telecom stock triples after bidding war

WASHINGTON — Glen Allen, Virginia-based telecom Straight Path Communications has seen its stock jump from less than $40 a share on April 10 to $120 Tuesday, on offers to be acquired.

Straight Path, which holds FCC licenses for lucrative 5G spectrum, was approached by AT&T earlier this month, and now says it has a competing offer that is superior.

AT&T offered $1.6 billion for the company April 10, sending Straight Path stock up 150 percent that day.

Straight Path now says it has received an unsolicited offer from a multinational telecommunications company, which it did not identify, for $1.8 billion. It says AT&T has five days to match or exceed the offer.

Straight Path, with less than a dozen employees, is one of the largest holders of 28 gigahertz and 39 gigahertz spectrum, the frequencies the Federal Communications Commission has approved for the next generation of wireless communications.

Verizon was reportedly considering a bid to counter AT&T’s offer for Straight Path earlier this month, Bloomberg News reported.

Jeff Clabaugh

Jeff Clabaugh has spent 20 years covering the Washington region's economy and financial markets for WTOP as part of a partnership with the Washington Business Journal, and officially joined the WTOP newsroom staff in January 2016.

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