Straight Path Communications Inc (NYSEMKT:STRP) shareholders are having a very nice Monday after AT&T Inc. (NYSE:T) agreed to buy the company for $95.63 per share in an all stock transaction, good for a total value of around $1.25 billion. The deal, which has been supported by majority shareholder Howard Jonas, is expected to close within a year, subject to FCC review. AT&T is buying Straight Path Communications Inc (NYSEMKT:STRP) in part due to the company’s valuable 28 GHz and 39 GHz millimeter wave spectrum licenses. CEO Davidi Jonas said, ‘The merger of AT&T and Straight Path Communications marks a vital point for us. Importantly, this merger provides Straight Path shareholders with a compelling return since Straight Path’s spin-off to become an independent public company in 2013, with an initial price per share of $6.40 on July 31, 2013’.
What Does The Smart Money Sentiment Say?
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Of the 742 elite funds we track, 8 funds owned $69.36 million of Straight Path Communications Inc (NYSEMKT:STRP) and accounted for 16.40% of the float on December 31, versus 7 funds and $30.79 million respectively on September 30.
The Bottom Line
Straight Path Communications Inc (NYSEMKT:STRP) shares have more than doubled due to an M&A transaction. For more reading, check out ‘Top 6 Best Cheap Acquisitions Made by Google‘.