A Doomed Deal? 1993 KKR buys a 1% stake in Kamaz. 1994 KKR is offered an option for nearly 16.5% of Kamaz at 90 cents a share in exchange for finding $300 million in financing. Under a vesting arrangement, KKR could exercise the option as early as 1998. 1995 KKR tops the $300 million target with a series of bank loans and refinancings. Its right to exercise the option begins vesting. JANUARY 1997 Tatarstan government announces deal to increase its stake in Kamaz from 8.3% to more than 40%. JUNE 1997 Tatarstan takes 43% stake in Kamaz. Tatarstan's Deputy Premier becomes the chairman of Kamaz. JULY 1997 Tatarstan orders KKR to come up with $300 million in new equity capital for Kamaz or forfeit its stock option. With Kamaz now trading at more than $3.30 a share, KKR's potential stake is now worth $50 million. KKR claims Kamaz owes it more than $30 million in investment banking fees. DATA: BUSINESS WEEK Return to main story

Updated July 31, 1997 by bwwebmaster
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