Straight Path Communications said a takeover agreement signed with AT&T still stands, despite the spectrum licensee’s board receiving an updated offer from a rival telecoms company.

In a statement, Straight Path Communications explained its original backing of a $1.6 billion offer tabled by AT&T in April remains valid because its board is yet to approve an increased rival bid. However, the spectrum licence holder noted its board did recognise the latest offer from an as-yet unnamed multinational telecommunications company as a superior proposal.

Straight Path Communications’ statement came after the rival company upped its original $1.8 billion offer to $2.3 billion. While the licensee offered no details of which multinational operator is behind the bid, several reports tip Verizon as the likely candidate.

What is clear is AT&T must respond to the increased offer within three working days. Straight Path Communications said it informed AT&T of the timeline and “intends to negotiate in good faith with AT&T during the negotiation period.”

The company added it is “not permitted” to enter into talks with the rival bidder during the AT&T negotiation period.

It is unclear if AT&T responded to the unnamed bidder’s original unsolicited offer for Straight Path Communications within a previous five working day time limit.

AT&T and its rival are competing for Straight Path Communications’ holdings of millimetre wave (mmWave) spectrum in the 28GHz and 39GHz bands, which are approved by US regulator the Federal Communications Commission for use in 5G services.

The rival bidder already agreed to pay a $38 million termination fee Straight Path Communications would owe AT&T if it chose not to move ahead with the current merger agreement.