Garmin Bids For Tele-Atlas: Navteq Should Have Waited

Garmin's (GRMN) delayed bid for Tele-Atlas confirms investor sentiment that perhaps Navteq (NVT) should have played a little hardball before agreeing to be purchased by Nokia (NOK).

I am still disappointed that Navteq gave up so cheaply. They are worth more and I am still holding their shares in the hopes of a counter bid by someone like Google (GOOG). At the very minimum, shares are worth $78 so its not like one can lose money. Besides, holding it and getting Nokia for it down the road means I might be able to avoid paying taxes on my capital gains.

Full Disclosure: I am long NVT and NOK but my position can change anytime without notice.

Comments

[User 119294:]

It is a cash deal, dummy; you're not going to any NOK for your NVT shares.

2007 Nov 01 11:01 PM

[AngleEdge:]

Yeah, agree with the above comment. For someone who posts on a respected financial blog site, I would have expected a little more research about the difference between a cash deal and a stock deal. NVT is being bought out for 78 dollars CASH, not stock. You will have to pay capital gains when this deal closes in the first quarter, it just depends on whether you will pay long-term or short-term.

2007 Nov 02 03:52 PM

[AngleEdge:]

Yeah, agree with the above comment. For someone who posts on a respected financial blog site, I would have expected a little more research about the difference between a cash deal and a stock deal. NVT is being bought out for 78 dollars CASH, not stock. You will have to pay capital gains when this deal closes in the first quarter, it just depends on whether you will pay long-term or short-term.

2007 Nov 02 03:52 PM