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Straight Path Communications Plunges After AT&T Pulls Out !

“There is no doubt that Verizon is over paying for the company”

AT&T Pulls Out of Straight Path Deal AT&T Pulls out of StraightPath Communications deal. Photo Source - Straight Path Communications Web Site

Straight Path Communications (STRP)  stock is plunging after the announcement that AT&T (T) is pulling out of the bidding war created by Verizon (VZ). The stock was down over 20% in pre-market trading. Verizon is also trading down this morning on the news,

There is no doubt that Verizon is over paying for the company, It’s $184 per share offer is almost double what AT&T had bid for it ($95.63 per share) and represents a premium of over 400%. In addition Straight Path ( Verizon) will have to pay a substantial break up fee to pull out of the deal. Valuable 5-G spectrum has been the catalyst for the move for StraightPath.

I expect AT&T shares to bounce up this morning on the news. I own shares of AT&T and Verizon, but I have to admit I believe AT&T is the smarter company at this point.

 

Your Thoughts or Comments are welcome!

 

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