Straight Path Communications, an owner of spectrum rights for fifth generation (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 $US1.6 billion.
A round of counter-offers from what Straight Path has called a “multi-national telecommunications company” has pushed the latest price tag to $US3.1 billion in a bid announced on Monday.
An unnamed counter-bidder also entered offers against AT&T of $US1.8 and $US2.3 billion. According to reports, the counter-bidder 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 and 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 pre-market trading on Monday, a jump of roughly $US43 a share to $US205.12 at 8:47 a.m. ET. As recently as April 7, Straight Path was trading for around $US36 a share, over the last three months shares have gained 515%.