NEW YORK (AP) — Shares of Garmin Ltd. spiked in Friday premarket trading after the navigation device maker said it won't pursue its bid to acquire Dutch digital mapmaker Tele Atlas NV and instead signed a six-year contract extension with Navteq Corp.
Garmin had been in a bidding war for Tele Atlas with Dutch rival TomTom NV. Earlier this year, TomTom launched a $2.8 billion bid for Tele Atlas, but Garmin then raised the stakes with a $3.3 billion bid, prompting TomTom to up its offer to $4.2 billion, or $43.63 per share.
Under the newly extended deal with Chicago-based Navteq, Garmin will use Navteq's digital mapping data though 2015, with a four-year extension option. Navteq, the only major digital mapping company other than Tele Atlas with global operations, recently agreed to an $8.1 billion takeover by cell phone maker Nokia Corp.
Financial terms of the deal were not disclosed.
In premarket electronic trading, shares of Garmin soared $14.05, or nearly 17 percent, to $98.05.
