Nokia is to pay $8.1 billion (£4 billion) for Navteq, an American digital map supplier, in an attempt to develop new revenue streams and to defend its No 1 position in the mobile phone market against internet groups such as Google.

The acquisition marks the group’s largest takeover and its latest effort to expand beyond its core business, but analysts balked at the $78-a-share cash offer and shares in the Helsinki-listed group fell as much as 4 per cent, recovering to close down 2 per cent at €26.17.

Navigation is one of the hottest segments in the technology industry with sales of personal mapping devices expected to triple in the next four years.

Richard Windsor, analyst at Nomura, said: “This is an expensive, defensive move.”

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