Daimler may up stake in Kamaz by 15pct

Daimler may raise its stake in truckmaker Kamaz to 25 per cent, sources familiar with the matter said, in a move that would ramp up the German carmaker's influence on Russia's vast autos market.

Daimler, which already holds 10 per cent of Kamaz, may buy an additional 15 per cent from Troika Dialog if it can agree a price with the Moscow investment bank, the sources told Reuters on Tuesday.

Kamaz shares were up 4.1 per cent at 73.39 roubles by 1015 GMT, valuing the company at 51.8 billion roubles ($1.8 billion) and the Troika stake at $270 million – close to what Daimler paid for its 10 per cent stake in late 2008. Daimler shares rose 1.1 per cent.

Analysts have said greater involvement from Daimler would boost Kamaz' performance and save Russia's largest truckmaker from relying on state help.

Kamaz employs just under 60,000 people and is based in Naberezhnye Chelny, Central Russia. It sold around 45,000 vehicles in 2008 and aims to sell 25-28,000 this year.

"If Daimler becomes a stronger strategic partner it would be good news for Kamaz – it would bring access to Daimler's new technology and the benefit of building Daimler models in Russia," VTB analyst Vladimir Bespalov told Reuters.

Daimler and Troika Dialog, which owns 44 per cent of Kamaz, are discussing a valuation for the stake, two sources told Reuters. They declined to say what the price 15 per cent could fetch, but Russian media have previously said Daimler might spend $300-$320 million.

The two groups held talks before the financial crisis hit last year but could not agree a price. A Daimler Trucks spokeswoman said on Tuesday that, as strategic partners, Daimler and Kamaz discussed a range of issues "but there is nothing that we can announce at present."

State-run investment group and minor Kamaz shareholder Russian Technologies is also interested in the Troika stake, sources have told Reuters, although Daimler has first refusal.

Russian Technologies is keen to create a new holding company for its stakes in Kamaz and heavily indebted carmaker AvtoVAZ – a move that looks likely to materialise following the appointment to the AvtoVAZ board of Kamaz chief Sergei Kogogin last week.

But the Russian government favours Western involvement as a means to bolster its auto industry, and recently invited AvtoVAZ shareholder Renault to increase its 25 per cent stake. Renault has yet to clarify its plans.

Kamaz shares jumped 25 per cent on September 30 after Russian news agencies reported Daimler was seeking to raise its 10 per cent stake, and held the gains despite a denial from the antitrust body.

Kamaz last month reported a first half loss of nearly 2 billion roubles, but said it could rely on state support if the situation deteriorated.