TomTom shares drop on fear of refinancing

TomTom shares drop on fear of refinancing
Shares of PND maker TomTom hit an all-time low on Friday, trading under €11. On Thursday an analyst raised concerns it may need to refinance its debt before end-2009 and as consumer spending slows.

"We are concerned that high gearing and exposure to weak consumer spending may result in a need for refinancing before the end of 2009," JP Morgan analyst Rod Hall said in a note on Thursday.

TomTom shares, which were initially listed in May 2005 at €17.50, have lost 25 percent since last Thursday, when the company held an analyst day, and over 80 percent since October 29 last year, when shares hit a record high of 66.70 euros.

Monday, October 6th 2008

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