Does Nokia’s Navteq Buy Threaten Tom Tom’s Purchase of Tele Atlas?
By Joseph Weisenthal - Tue 02 Oct 2007 11:16 AM PST
Nokia’s (NYSE: NOK) planned $8.1 billion acquisition of Navteq is seen, partly, as a response to Tom Tom’s deal to buy digital mapmaker Tele Atlas. But Navteq is being valued much more richly than Tele Atlas, and now there’s concern that Tele Atlas may want to shop around for a better deal. Forbes quotes ABN Amro analyst Wim Gille, who thinks a bidding war for Tele Atlas looks increasingly likely, with both Garmin and Microsoft (NSDQ: MSFT) mentioned as possible suitors. Shareholders must feel similarly, as Tele Atlas shares whipped upwards on the Navteq news, settling above Tom Tom’s offering price. The timing of all this is bad for Tom Tom, which just today is initiating its formal offer to purchase Tele Atlas, with a shareholders meeting planned for November, 14th (Release).
