Navigational error

26 March 2008 By William Echikson

The two digital mapmakers are trading at big discounts to their proposed takeover prices because both face tough antitrust scrutiny. But regulators will probably clear TomTom and Nokia to complete the deals.

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The European Commission is reviewing the proposed E2.9bn ($4.5bn) acquisition by TomTom, the personal navigation device manufacturer, of Tele Atlas, the digital map maker. The Commission is also reviewing the proposed $8.1bn acquisition by Nokia, the mobile phone maker, of another big map digital maker, USbased Navteq.

Regulators have opened an indepth Phase II inquiry into the TomTomTeleAtlas deal and are due to give a final decision by May 5.

Nokia has offered no remedies for potential competition problems for its bid for Navteq, a European Commission spokesman said on March 26. The Commission now has until March 28 to decide whether to approve the deal or move to an indepth probe which could take four months.

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