Garmin Withdraws $3.3 Billion Tele Atlas Bid

Withdrawal Clears Way for Rival TomTom to Take Control of Dutch Mapmaker

GPS device maker Garmin withdrew its $3.3 billion buyout offer for Dutch mapmaker Tele Atlas NV today, a move that opens the door for Tele Atlas to be acquired by Garmin's chief rival, TomTom.

TomTom had already offered more than $2 billion in a bid to take control of Tele Atlas, a move that sparked the larger counteroffer from Garmin in October. Along with announcing it's plans to withdraw bid, Garmin said today that it has reached a deal with Navteq Corp. -- Tele Atlas' only rival to offer digital maps on a global scale --  that secures maps for Garmin devices through 2015.

Also last month, Nokia Corp., tendered an $8.1 billion buyout offer for Navteq. Garmin officials said at the time that the company's bid for Tele Atlas was a move to ensure that world's two largest digital mapmakers did not end up in the hands of its two major rivals.

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