TomTom surged 14% in Amsterdam trading after Vodafone agreed to buy Wayfinder Systems AB, a Swedish maker of wireless navigation systems. TomTom shares rose 53 cents to 4.47 euros.
Vodafone’s plan to buy Wayfinder “could mean that TomTom and Vodafone will look to approach each other further in the area of navigation services for mobile phones,” Wing-Yen Choi, an Amsterdam-based analyst at Theodoor Gilissen, said, adding that this could enhance revenue.
Choi, who has a “buy” recommendation on TomTom shares, said the technology sector in general is doing well today, after being “punished harshly.”
TomTom and Vodafone work together in countries including Germany, the Netherlands and Portugal to collect and distribute traffic information for users. Tele Atlas, the maker of digital maps that was bought by TomTom this year, cooperates with Wayfinder.
Fri, Dec 12, 2008
Financial News