Garmin is still considering a renewed offer for digital mapmaker Tele Atlas, despite considerable market speculation that it will pull out of the contest after rival TomTom raised its offer to the company to 2.9bn euros ($4.2bn).
Tele Atlas stock fell 4.17% to 32.10 euros ($47), reflecting declining hopes that Garmin will top TomTom’s latest 30 euros ($44) a share offer.
There has been speculation that Garmin only made its 2.3bn euro ($3.3bn) counter-bid bid for the company to force TomTom to raise its 2bn euros ($2.8bn) offer, and weaken its biggest rival financially. Garmin admitted that its bid for Tele Atlas would dilute earnings for two years so any company making such a financial commitment would suffer from a weakened share price.
While engaged in what is like a multi-billion-dollar poker game, Garmin announced a confidential global settlement. A brief statement said the parties did not disclose details of their agreement.