(Actors Ted Danson and Sam Waterston placing bids during Christie's Green Auction, on the 40th anniversary of Earth Day, in New York.Reuters/Chip East)
Straight Path Communications, an owner of spectrum rights for fifth generation, or 5G, networks, has been the subject of a heated bidding war between two wireless giants.
AT&T originally targeted Straight Path in April for a takeover bid, offering $1.6 billion.
A round of counteroffers from what Straight Path has called a "multinational telecommunications company" has pushed the latest price tag to $3.1 billion in a bid announced Monday.
An unnamed counterbidder also entered offers against AT&T of $1.8 billion and $2.3 billion. According to reports, the counterbidder is in fact Verizon.
AT&T will have three days to offer a revised bid for the firm.
Straight Path's ownership of 5G networks is key for both AT&T and Verizon in their push to move to faster networks. The firm is the third-largest owner of spectrum licenses that could be used for 5G, according to Bloomberg.
Following the announcement of the newest bid, Straight Path shares soared by 27% in premarket trading Monday, a jump of roughly $43 a share to $205.12 at 8:47 a.m. ET. As recently as April 7, Straight Path was trading for about $36 a share; over the past three months, shares have gained 515%.
(Markets Insider)
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