By Harro ten Wolde
PARIS (Reuters) - Tele Atlas has had no talks and sees no sense in separation from TomTom (TOM2.AS: Quote, Profile, Research, Stock Buzz), which bought the digital map maker last year for 2.9 billion euros ($4 billion) and is struggling with a debt-load.
Analysts have been suggesting TomTom may be forced to sell Tele Atlas as it may breach its loan covenants.
"It's not an option we've spent a second thinking about -- there's no discussion," Tele Atlas Chief Executive Bill Henry said at the Reuters Global Technology summit in Paris.
"I think the value is in the integrated group because this whole community is essential to the mapmaking process, and that community exists through the integration of TomTom and Tele Atlas. So I don't think it makes any sense to look at them separately," he added.
TomTom shares extended losses on Thursday after Henry's remarks, dropping to 5.20 euros from 5.25. The shares were down 0.2 percent at 5.25 euros by 7:39 a.m. EDT.
TomTom bought Tele Atlas last year after bidding war with U.S. competitor Garmin (GRMN.O: Quote, Profile, Research, Stock Buzz). TomTom's current market value of less than 660 million euros is a fraction of what it paid for Tele Atlas.
Henry said he still sees growth in the Personal Navigation Market (PND) despite a decline in European sales during the first quarter.
"The PND market is far from dead: It is still big, it is still very meaningful ... There are people who predict the PND will disappear in the next short period of time - I don't believe that," Henry said.
"My view is that the PND market is not going to return to 100 percent growth year-year again. But I think it is a very solid category, I think it is going to stay for the foreseeable future."
(Reporting by Harro ten Wolde, editing by Rupert Winchester)
($1=.7254 Euro)
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