UPDATE 1-Lentex may acquire Pegas, says Lentex shareholder

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Polish floor coverings and textiles manufacturer Lentex may be interested in taking over Czech artificial fabrics maker Pegas Nonwovens , Lentex's largest shareholder said on Monday.

"Pegas could become a takeover target," Krzysztof Moska, who controls around 15 percent of Lentex, told Reuters.

"I'm talking to two or three companies right now, but any decisions could come in three months at the earliest," he added.

Pegas went public in December last year. By market share it is Europe's number two fabrics supplier to makers of hygiene products such as nappies. More than 40 percent of its shares by owned by private equity fund Pamplona.

Shares in Pegas rose nearly 6 percent early on Monday following a Polish newspaper report that Lentex may seek to acquire the company, traders said.

Pegas was trading 5.3 percent higher at 812 crowns by 1205 GMT, leading gainers on the Prague bourse. The blue-chip index PX rose 0.5 percent.

Lentex was up 2.5 percent at 83 zlotys, outperforming a 0.9 percent rise in the WIG index .

Lentex Chief Executive Andrzej Majchrzak said the company was analysing various development projects and it was too early to say which way it would go.

"We are at a stage of analysing different projects and we could still buy either machines or a whole company or increase our product offering," he told Reuters.

[WARSAW/Reuters/Finance.cz]