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TomTom Jumps as Magazine Says Delisting Being Considered

TomTom NV (TOM2), the maker of portable navigation devices that dominated the industry before Google Inc. (GOOG) and Apple Inc. (AAPL) took market share, rose the most in six months following a report the company may delist its stock.

TomTom gained 46 cents, or 16 percent, to 3.41 euros, the biggest jump since Oct. 24. The stock rose as much as 24 percent earlier, the largest intraday advance in three years.

The company’s four founders are considering making an offer for the remaining shares, together with investment funds Cyrte Investments BV and Janivo Holding, Management Team magazine reported today on its website, without citing anyone. Kristina Nilsson, a spokeswoman for Amsterdam-based TomTom, declined to comment.

The market for personal navigation devices shrank 10 percent in Europe and 25 percent in the U.S. last year, Chief Executive Officer Harold Goddijn, one of TomTom’s founders, said in February. Devices such as Apple’s iPhone and smartphones based on Google’s Android platform that feature maps and navigation programs have hurt TomTom’s stock, which has slumped 80 percent in the past four years.

TomTom has gained 12 percent this year for a market value of 756 million euros ($999 million). The shares reached as high as 56 euros in 2007. TomTom competes with Garmin Ltd. (GRMN), whose shares are traded in the U.S.

“The question is how does management see the future for TomTom and what do investors expect,” said Peter Olofsen, an Amsterdam-based analyst at Kepler Capital Markets, who has a reduce rating on the stock. “Obviously the market has its doubts.”

Cyrte, owned by Dutch insurer Delta LLoyd NV (DL), and Janivo jointly hold a 10.2 percent stake in TomTom, according to a regulatory filing dated Feb. 29. CEO Goddijn and co-founders Corinne Goddijn-Vigreux, Pieter Geelen and Peter-Frans Pauwels each own about 12 percent, according to regulatory filings.

To contact the reporters on this story: Maud van Gaal in Amsterdam at mvangaal@bloomberg.net; Maaike Noordhuis in Amsterdam at mnoordhuis@bloomberg.net

To contact the editors responsible for this story: Frank Connelly at fconnelly@bloomberg.net; Benedikt Kammel at bkammel@bloomberg.net

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