World News: Garmin gatecrashes TomTom’s party

World News:  Garmin gatecrashes TomTom’s party

Tele Atlas has confirmed that it has received notification that Garmin intends to make a public offer of €24.50 in cash per outstanding share, 15% higher than the €21.25 per share that TomTom offered in July.

Garmin's offer is worth approximately €2.1 billion, which beats TomTom’s offer by almost €300 million, well worth the €20 million break fee payable to TomTom if Tele Atlas decides to accept Garmin’s offer.

However, industry analysts don’t believe TomTom will bow out gracefully, and expect a counter-bid to be announced.

With TomTom being Garmin’s main competitor in the navigation market, this could be the beginning of an interesting bidding war for Tele Atlas, particularly since Nokia removed the other major player from the equation by agreeing to acquire Navteq earlier this month for $8.1 billion.

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