Dutch TomTom launches formal offer for Tele Atlas

AMSTERDAM (Reuters) - Dutch navigation systems company TomTom (TOM2.AS: Quote, Profile, Research) launched a formal takeover offer for digital map supplier Tele Atlas (TA.AS: Quote, Profile, Research) on Tuesday.

TomTom confirmed the offer price of 21.25 euros per share in cash, but Tele Atlas shares continued to trade above the offer price after Nokia (NOK1V.HE: Quote, Profile, Research) made an offer for rival map maker Navteq (NVT.N: Quote, Profile, Research).

Analysts said that Nokia's $8.1 billion offer for Navteq could reshape the industry and make the combined company of TomTom and Tele Atlas a takeover target itself.

Tele Atlas shares traded at 21.70 euros by 0715 GMT (3:15 a.m. EDT), down 0.5 percent from the previous day but still 2 percent above TomTom's offer price. TomTom shares were up 0.8 percent at 57.23 euros.

TomTom said the tender period for Tele Atlas shares will begin on October 3 and end on December 4. It plans to declare the offer unconditional if 80 percent of Tele Atlas shares are tendered.