Link: BBC NEWS | Business | Nokia to buy digital map company
The BBC are reporting that Nokia has agreed to buy digital mapping company Navteq for $8.1bn – about $4.0bn. However, there’s concern that the price offered is too high.
Richard Windsor from Nomura is quoted as saying: “It is very expensive; the stock is currently about 50 times the forward earnings, which is fairly pricey”.
The deal – at about 34% above Navteq’s share price a month ago – has been approved by both companies boards but still needs regulatory and shareholder sign-off.
I have been covering Navteq for a while. Here is my analysis:
http://sramanamitra.com/2007/1…..comes-key/
This is an excellent move on Nokia’s part. Note, there is no other indepdendent GIS data vendor in the market.
Regards, Sramana