TomTom Rises on Vodafone Bid for Swedish Wayfinder (Update1)
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By Maud van Gaal
Dec. 9 (Bloomberg) -- TomTom NV surged 14 percent in Amsterdam trading after Vodafone Group Plc, the world’s largest mobile-phone company, agreed to buy Wayfinder Systems AB, a Swedish maker of wireless navigation systems.
TomTom, Europe’s largest manufacturer of navigation devices, rose 53 cents to 4.47 euros.
Vodafone’s plan to buy Wayfinder “could mean that TomTom and Vodafone will look to approach each other further in the area of navigation services for mobile phones,” Wing-Yen Choi, an Amsterdam-based analyst at Theodoor Gilissen, said, adding that this could enhance revenue.
TomTom and Vodafone work together in countries including Germany, the Netherlands and Portugal to collect and distribute traffic information for users. Tele Atlas, the maker of digital maps that was bought by TomTom this year, cooperates with Wayfinder.
Choi, who has a “buy” recommendation on TomTom shares, said the technology sector in general is doing well today, after being “punished harshly.” Shares of TomTom have fallen 91 percent this year.
Today, Vodafone said it agreed to buy Wayfinder for 239 million kronor ($29.3 million) in cash.
To contact the reporter on this story: Maud van Gaal in Amsterdam at
mvangaal@bloomberg.net
Last Updated: December 9, 2008 11:49 EST ~
Fonte: Bloomberg