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Bidding war starts over control of Tele Atlas

The merger and acquisition (M&A) market in the navigation market is heating up again.

The Financial Times (opens in new tab) reports that Navigation and communication devices manufacturer Garmin is planning to wreck the plan of Tomtom to purchase Dutch map provider Teleatlas by upping the offer for TeleAtlas shares in a surprising move.

Tele Atlas (opens in new tab) conditionally agreed to be acquired on the 23rd of July 2007 for Eur 2bn.

The recent purchase of Navteq, a provider of Geographic Information Systems (GIS) data, by mobile device company Nokia for USD 8.1bn means that there are no major GIS providers left on the market.

The news got sent Tele Atlas shares rocketing by nearly 15% and the shares are almost doubled their price of one year ago, well above the offered price of Garmin or Tomtom (Eur 27.60 against Eur 24.50 and Eur 21.25 respectively).

The M&A speculation added nearly Eur 400m to the market capitalisation of Tele Atlas in one week.

It is not known whether either of the companies will up their offers in order to outbid one another.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at ITProPortal.com where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.