Nokia buy Navteq for $8.1bn

Link: BBC NEWS | Business | Nokia to buy digital map company

The BBC are reporting that Nokia has agreed to buy digital mapping company Navteq for $8.1bn – about $4.0bn. However, there’s concern that the price offered is too high.

Richard Windsor from Nomura is quoted as saying: “It is very expensive;  the stock is currently about 50 times the forward earnings, which is fairly pricey”.

The deal – at about 34% above Navteq’s share price a month ago – has been approved by both companies boards but still needs regulatory and shareholder sign-off.