No peace, no money

8 Oct 2010 By Rob Cox Follow @rob1cox

The U.S. private equity firm is embroiled in a nasty, even violent, battle over supermarket chain Lenta. For a $110 mln investment, it might seem a case study in why Russia is too much trouble. But it may be worth it: if TPG and its partners make peace, the profit could be huge.

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On Sept. 14, a shareholder conflict at Russian hypermarket chain Lenta sparked a fistfight at the firm's headquarters, leading to 20 people being detained by police, Reuters reported.

Lenta is 31 percent owned by TPG and Russian bank VTB. The pair paid about $100 million for their stake, with the U.S. private equity firm accounting for about 80 percent of the investment.

August Meyer owns 41 percent. The European Bank for Reconstruction and Development owns another 15 percent of the company.

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