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Straight Path, a US company specialising in millimetre wave communications used in 5G technology, has received a $3.1bn offer from an unnamed multinational telecom group, putting the pressure on AT&T to sweeten its offer.

The board of Straight said that it deemed the new offer received superior to AT&T’s $1.6bn bid. The Dallas, Texas-based telecom giant has three business days to come up with a counter offer.

Under the terms of the new offer, Straight shareholders will receive a $184 per share in an all-stock bid. AT&T had agreed to pay $95.63 per share, also all in stock.

Straight, which was spun out of IDT in 2013, has been embroiled in a probe with the Federal Communications Commission over its spectrum license. It settled in January.

Copyright The Financial Times Limited 2017. All rights reserved.
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