Daimler in talks to buy stake in Kamaz

By Hendrik Sackmann

STUTTGART, Germany (Reuters) - Daimler AG (DAIGn.DE: Quote, Profile, Research), the world's biggest maker of commercial vehicles, is in talks to buy a 42 percent stake in truckmaker Kamaz (KMAZ.MM: Quote, Profile, Research) as a way to boost sales in the fast-growing Russian market.

Russia is now Europe's largest truck market and Kamaz is the top player, with a market capitalization of nearly $4 billion. It builds nearly three quarters of the country's dump trucks and about half of its other large cargo vehicles.

"Along with the option of building a new factory for local assembly of Daimler Trucks, the division is also studying the possibility of acquiring a stake in ... Kamaz that would enable the two companies to combine their development, production, and sales expertise," the company said in a statement.

Reuters had earlier cited a source familiar with the situation as saying that Daimler planned to take a stake in Kamaz, seizing opportunities in the Russian truck market more quickly than it could by setting up its own production.

A 42 percent stake in Kamaz would be worth about $1.7 billion at the current share price.

Daimler shares, which fell nearly 10 percent on Thursday after it cut its 2008 earnings outlook, closed up 1.1 percent at 38.88 euros on Friday, in line with the DJ Stoxx European autos sector index .

The stock has lagged the index by 20 percent this year.

Kamaz shares were down 2.3 percent at 129 roubles in Moscow.