TomTom NV (AMS:TOM2)’s stock price was on the rise Wednesday and it may be due to a possible take over suitor: Apple Inc. (NASDAQ:AAPL).
On Wednesday, TomTom NV (AMS:TOM2)’ jumped 5.65 percent to 4.06 euros–its highest since Oct. 15–after a Rabobank International analyst said Apple may present a takeover bid, reported Bloomberg. For the year-to-date, TomTom is up 33 percent and has a 901 million euro value ($1.17).
The Dutch company is currently the supplier of navigation applications for Apple’s new iPhone 5.
The high trading day came as Hans Slob, a Rabobank analyst, gave a 30 percent chance that Apple would buy the software company. An appeal to Apple Inc. (NASDAQ:AAPL) for the company is its software has the ability to make fast changes to remedy mapping errors, or make new functions.
Slob wrote in a Wednesday research report via Bloomberg that “TomTom needs the cash from Apple, and Apple needs the know-how of TomTom.” He added that takeover is also a “royal way out” for TomTom NV (AMS:TOM2)’s founders.
The analyst believes Apple would pay as high as $10 euro. He holds a “Buy” recommendation for TomTom and subsequently increased his share-price estimate 38 percent to 5 euros.
The news comes as Apple Inc. (NASDAQ:AAPL) faces pressure to correct its mapping software, which has been criticized for its unreliable landmark searches, according to Bloomberg, as users have been lost from their routes; there is also a lack of public-transit directions.
Apple Inc. (NASDAQ:AAPL) quickly apologized for problems once they came to light in October, but they appear to continue. Recently, its maps have been especially poor for users in the Australian Outback. In an anecdote via The Register, here’s one lost story:
Just when Apple thought it couldn’t get any worse for its beleaguered Maps app, which has been leading motorists deep into the desert when they try to find the town of Mildura, The Register can reveal another SNAFU that could send travellers to an even less hospitable destination.
The site in question is Mount Isa, a town in the interior of Queensland. Famed for its colossal mines and attendant facilities, the town is home to around 23,500 souls.
But even the city’s enormous size doesn’t explain why iOS 6 maps places the town in the spot depicted below, which appears to be miles from anything of note. Google Inc (NASDAQ:GOOG) Maps, for what it is worth, places the nearest road to the spot Apple picks for the town as being 141 kms from downtown Mount Isa.
While this could be a win for Apple Inc. (NASDAQ:AAPL), but whether TomTom NV (AMS:TOM2) is interested remains to be seen. Back in October, TomTom Chief Executive Officer Harold Goddijn, one of company’s founders, said it would stay independent after analysts predicted they would go private through outside financing.
Apple Inc. (NASDAQ:AAPL) has not commented on the news and its stock is currently down 0.32 percent, trading at $539.46.