(Adds analyst comment, background, updates price)
By Jana Mlcochova
PRAGUE, Feb 11 (Reuters) - Private shareholder Belviport
Trading Ltd will likely sell its 10.06 percent stake in Zentiva
<> to Sanofi-Aventis <SASY.PA>, a source close to the
company said, increasing the French drugmaker's chances of
gaining control of its Czech peer.
Sanofi, Zentiva's largest shareholder with 24.9 percent,
made a 1,150 crown-a-share bid for Zentiva last year, valuing it
at 43.86 billion crowns ($1.99 billion).
"Belviport will likely sell it (the stake)," a source close
to Belviport told Reuters on the condition of anonymity.
Analysts had said the bid, which expires on Feb. 20 and is
conditional on Sanofi gaining more than 50 percent of Zentiva,
may be ruined if other shareholders, including Belviport,
decided not to sell.
Czech financial group PPF and investment group J&T own 24.3
percent and 7.6 percent respectively, although analysts said
they may have a wider control through other shareholders, and
together with Belviport could control more than 50 percent.
Komercni Banka analyst Josef Nemy said Sanofi may not need
the PPF stake if Belviport sells its as part of the offer.
"If Belviport really sold its stake then Sanofi would
control almost 41 percent of Zentiva -- as management had
promised to sell its (5.9 percent) stake -- and could gain
control over Zentiva even without getting the stake of Zentiva's
second largest shareholder, the PPF Proup," Nemy said.
Sanofi could achieve a majority holding by buying some of
the firm's 27 percent held by other small shareholders.
Purchasing Zentiva would take Sanofi, whose top-selling
drugs include blood-thinner Plavix and anti-thrombotic drug
Lovenox, deeper into the field of generics, previously shunned
by large pharmaceutical companies but now seen as an entry point
to booming emerging markets. []
The offer has kept Zentiva's share price stable for months,
despite the global financial crisis.
Zentiva shares have hovered around the bid price, while the
main Prague index has dropped 44 percent since Sep. 22, when
Sanofi raised the bid from its original offer of 1,050 crowns.
Sanofi said it would delist Zentiva if its bid succeeded.
Spokesmen for PPF and J&T on Wednesday declined to comment
on their groups' plans for their Zentiva stakes.
PPF had also bid to takeover Zentiva, offering 950 crowns a
share, but pulled back with its bid soon after Sanofi offered a
higher price.
PPF on Monday withdrew a court petition in Amsterdam to have
a Zentiva extraordinary meeting called to get more details about
the takeover bid, after Zentiva held a meeting earlier on the
same day.
Analysts have said that facing the loss of patents, Sanofi
will have to make acquisitions in 2009 to boost its growth.
Zentiva shares closed up 0.24 percent at 1,133.70 crowns,
while the PX index shed 1.48 percent.
(Editing by Andrew Macdonald)
