October 1, 2009 / 7:09 AM / 11 years ago

UPDATE 2-TomTom worker probed over alleged insider trading

* Investigation focusing on one TomTom employee

* TomTom offices searched by prosecutor, tax inspectors

* TomTom says no indication person had insider information

* Shares down 2 pct (Adds background, shares)

AMSTERDAM, Oct. 1 (Reuters) - An employee at Dutch navigation device maker TomTom (TOM2.AS) is under criminal investigation by the public prosecutor for alleged insider trading, the prosecutor’s office said on Thursday.

Representatives of the prosecutor, market regulator AFM and tax authorities searched TomTom’s office on Tuesday, the prosecutor’s spokeswoman said.

A spokeswoman for the prosecutor said the investigation was targeting one employee of TomTom, not the whole company.

A TomTom spokesman said: "The investigation focuses on one of our employees but we have no indication that this person had any insider information," adding that the person under investigation was not a board member. Shares in TomTom, which makes portable navigation devices for cars and mapping software for handheld computers, were down 2 percent at 11.49 euros at 1106 GMT, underperforming a flat Amsterdam blue chip index .AEX

The prosecutor’s office did not disclose the period that the investigation is focusing on.

In June, TomTom shares rose as much 50 percent in a five-day period, after the presentation of its iPhone application and market talk of Apple (AAPL.O) being interested in buying a stake in the company, a rumour that TomTom denied. [ID:nLC433261] [ID:nL9111362]

Days later, TomTom announced a 430 million euro capital increase via a combination of a private placement and a rights issue. [ID:nLF475857]

TomTom said it would fully cooperate with the investigation. (Reporting by Harro ten Wolde; Editing by Erica Billingham)

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