Straight Path's stock rockets after FCC settlement clears way for review of strategic alternatives
Straight Path Communications Inc.'s stock rocketed 54% toward a 15-month high in premarket trade Thursday, after the wireless spectrum holder announced a settlement with the Federal Communications Commissions that clears the way for the company to review strategic alternatives. The stock was on track to open at the highest level since October 2015. As part of the settlement, the FCC has ended its investigation related to Straight Path's wireless spectrum licenses, leaving the "vast majority" of its 39 gigahertz spectrum intact, and its 28 gigahertz spectrum unchanged. "With this settlement, we have cleared the way for a review of strategic alternatives to maximize shareholder value," said Chief Executive Davidi Jonas. "To represent us in our endeavors, we have retained Evercore, a premier independent investment banking advisory firm." The stock had more than doubled over the past 12 months through Wednesday, while the S&P 500 had climbed 17%.
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