Tuesday, March 18. 2008

CNN: Wall Street Wary of TA/NAVTEQ Acquisitions

CNN Money reports that both pending acquisitions of Tele Atlas and NAVTEQ have "lost their bearings." NAVTEQ's stock is trading almost $10 below the $78 per share offer from Nokia.

Yesterday was the deadline for TomTom to respond to EU questions about the acquisition. What did the EU ask?

Whether:

(1) TomTom and Tele Atlas would keep sensitive information from rival GPS customers confidential,
(2) Tele Atlas would provide TomTom competitors inferior maps,
(3) the combination created efficiencies otherwise unattainable.

The article goes on to note that what happens with TomTom/TA will likely impact Nokia/NAVTEQ and that the drop in stock prices suggests Wall Street is wary.

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To be fair the article reflects wariness in whether the deals will happen for compliance and regulatory reasons rather than any concerns the deals make structural sense to the businesses involved owing to the self-evident synergies and the continuing interest in location related enterprises, GPS/device/LBS/consumer related or not.

#1 James Cutler (Link) on 2008-03-20 04:13 (Reply)

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In reply to	[ Top level ]#1: James Cutler on 2008-03-20 04:13
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