| |||||||||||||||||||||||
| |||||||||||||||||||||||
U.S. car navigation device maker Garmin International Inc. on Wednesday offered ¤2.3 billion ($3.3 billion) for Dutch digital map maker Tele Atlas NV, trumping a bid from rival TomTom NV. Olathe, Kan.-based Garmin said it would pay ¤24.50 per Tele Atlas share. The offer is 15% higher than TomTom's and is a 48% premium to the Tele Atlas share price on July 20, the last business day prior to the TomTom deal, Garmin noted. Tele Atlas gained ¤3.67, or more than 15%, to ¤27.68 in Wednesday morning trade amid expectations of a bidding war. Garmin said that a tie-up of the two companies would create superior mapping coverage. "We believe that Tele Atlas' direction and mapping strength in Europe and Asia are closely aligned with Garmin's market needs and vision for the future," Garmin said on its Web site. "Given the current moves towards consolidation in the sector, we believe now is the right time for us to combine with a mapping supplier." Earlier this month Finland's Nokia Oyj, the world's largest cell-phone manufacturer, agreed to buy U.S. car navigation software provider Navteq Corp. for $8.1 billion. TomTom's July deal for Tele Atlas was valued at ¤21.25 per share and valued the target's share capital at about ¤2 billion. Tele Atlas is a major supplier of digital road maps to TomTom. TomTom shares plummeted ¤9.26, or just over 13.5%, Wednesday morning following news of the Garmin offer. At that price, TomTom has a market cap of ¤6.6 billion. A call to TomTom was not immediately returned. Garmin is looking to Credit Suisse Group and Wachovia Capital Markets LLC for financial advice and has tapped Allen & Overy LLP and Cleary Gottlieb Steen & Hamilton LLP for legal services. Tele-Atlas is taking legal counsel from Skadden, Arps, Slate, Meagher & Flom LLP's Scott Simpson. Garmin plans to launch the offer before Dec. 4, the day TomTom's offer is scheduled to expire. The bid is subject to customary conditions, including antitrust approvals, and requires the acceptance of at least two-thirds of Tele Atlas shareholders. If the deal closes, Garmin said it would operate the target as a separate entity, based and headquartered in the Netherlands.  Deal Video
    Community
 Elsewhere on The Deal.comDealwatch
The Deal MagazineCorporate Dealmaker
The Deal VideoCategories
Blog roll
Archives
| |||||||||||||||||||||||
| |||||||||||||||||||||||
