Navigation firm Garmin has dropped out of the bidding war for digital mapmaker Tele Atlas, clearing the way for rival bidder Tom Tom to acquire the company. Last week, Tom Tom stepped in with a $3.57 billion bid, upping Garmin’s $3.3 billion bid from the week before. Evidently, Garmin has determined that this level is too rich for its blood. In addition to this announcement, Garmin has stated that it will renew its agreement with Navteq (in the process of being acquired by Nokia), giving Garmin access to Navteq data through at least 2015, with an option for four more years. Shares of Garmin are up strongly in pre-market trading out of relief that the company won’t be making such a big buy. Tele Atlas shares are down sharply on disappointment that the bidding won’t spiral higher. Release.

• TomTom Ups Bid For Tele Atlas; Valued At $3.57 Billion
• Garmin Offers $3.3 Billion For Tele Atlas