TomTom Shareholders Green-Light Share Issue For Bigger Tele Atlas Bid
By Robert Andrews - Tue 04 Dec 2007 08:27 AM PST
TomTom shareholders have agreed to finance the Dutch sat-nav company’s acquisition of map maker Tele Atlas with a 457 million euro ($673.52 million) share offer. Holders at an EGM approved the proposal to issue 8.16 million shares at a whopping 56 euros ($82.50) each, Thomson reports. After Nokia (NYSE: NOK) bought Navteq, CEO Harold Goddijn said a “big shift in the dynamics since the bidding started” prompted TomTom to up its bid from 21.25 euros ($31.31) per share to 30 euros ($44.21), trumping rival Garmin’s 24.50 euro ($35.35) bid. The European Commission last week started a phase-two competition inquiry in to the acquisition but Goddijm said that wouldn’t have happened had Nokia’s purchase of Navteq piqued consolidation concerns.
