Dec 11 2007
Nokia offers $8.1 bln for Navteq
Nokia said on Monday it will offer $8.1 billion for U.S.-based digital map supplier Navteq in its largest takeover ever, but its shares dropped because investors regarded the deal as expensive.
The agreed deal would give the world’s top cellphone maker — which is looking for new revenue sources as the cellphone industry matures — a stronghold in the navigation business, one of the fastest growing segments in the technology industry.
"First and foremost I want to emphasize this is about growth," Nokia’s Chief Financial Officer Rick Simonson told a conference call with analysts.
Nokia shares fell more than 4 percent on the news, but later recovered and were 2.2 percent lower at 26.07 euros by 11:14 a.m. EDT. Shares in Navteq were 1.3 percent lower at $76.99, just below Nokia’s offer of $78 per share.
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