Teligent lands $117.5 M bid from front-line contender
Teligent put its core business up for bid Friday and already has a taker. Teligent Acquisition Corp., formed recently by an undisclosed group of bidders, will submit the first bid of $117.5 million, a Teligent spokesman says.
"This will be the stocking horse bidder," he tells CEDaily. TAC is the initial bidder, and subject to higher ones.
He could not say who the initial bidders forming the company were, nor could he say if there were other bidders, although he noted that TAC is a separate company and is raising funds through private sources.
Present COO Jim Continenza would be CEO of the new company, and the current Teligent senior management would remain intact. A new CFO will be named shortly, the company says.
Teligent, a fixed wireless provider, filed for Chapter 11 bankruptcy in May and says it's been actively seeking buyers.
The next "milestones" start with a hearing this week, where Teligent will seek the bankruptcy court's approval of the bidder protection and auction procedures. A roughly 30-day waiting period will follow, during which Teligent will entertain other potential bids, followed by an auction in one of the law firms involved in the deal.
If TAC lands the bid, the deal will be subject to regulatory approvals, which the company hopes to get in the 4th quarter.
Teligent's spokesman would not comment on how the fundraising was going.
Under the deal, the winner would pay the bid amount for Teligent's core domestic fixed wireless business and assets, with the goal of funding operations in 11 markets, including Boston, Chicago, Cleveland, Dallas, Los Angeles and New York.