Shares of NextWave Wireless Inc. (PINK: WAVE), managing and maintaining wireless spectrum interests in U.S. and Canada, are seeing a huge rally in trading today.
At last check, WAVE shares were trading 416% higher at $1.29 on above average volume of 1.39 million. The stock gained 545% in the last three trading sessions.
WAVE shares are soaring after the company agreed to be acquired by AT&T Inc. (NYSE: T).
AT&T will acquire NextWave for $600 million in cash, most of which will go toward paying off WAVE’s debt. The acquisition could provide AT&T more room on the airwaves for wireless broadband. However, there are unresolved problems with some of WAVE’s radio bands.
The transaction does not include all of WAVE’s spectrum. Some of the company’s Canadian and U.S. holdings will be placed into a new holding company, which will be owned by its debtholders.
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