* Sanofi has 94 pct of Zentiva, ending long takeover battle
* Purchase makes Sanofi No. 11 generic drug firm worldwide
* Sanofi CEO says $2 bln deal typical of future M&A strategy
(Updates with CEO comment, Zentiva shares, background)
By Caroline Jacobs
PARIS, Feb 25 (Reuters) - Sanofi-Aventis <SASY.PA> finally
clinched its $2 billion takeover of Czech drugmaker Zentiva
<> on Wednesday, boosting its presence in generic
medicines and setting the stage for further acquisitions.
Chris Viehbacher, the French pharmaceuticals group's new
chief executive, who took over on Dec. 1, said the Zentiva deal
showed the potential for growth through diversification.
"This operation is a typical example of the kind of
acquisition that I want our company to make, as part of our
efforts to diversify and strengthen our business in areas where
there are attractive growth opportunities," he said.
The fight for control of Zentiva has been lengthy, with
Sanofi -- which already held 24.9 percent -- first attempting in
June 2008 to acquire the rest of Zentiva, after financial group
PPF moved to scoop up the business.
In the end, PPF, Zentiva's second-largest shareholder, and
Czech investment group J&T threw in the towel last week and
agreed to accept a sweetened Sanofi offer of 1,150 crowns per
share, valuing the firm at 43.9 billion Czech crowns ($1.98
billion).
Following the expiry of Sanofi's offer on Feb. 20, the
Paris-based group now has 94 percent of Zentiva's share capital
-- more than the 90 percent needed to squeeze out minority
shareholders. Sanofi intends to delist the firm.
The addition of Zentiva will make Sanofi the
eleventh-largest supplier of generic drugs worldwide, based on
pro forma 2008 sales.
Traditionally, unpatented generics have been shunned by big
drugmakers. But a looming "cliff" of patent expiries across the
industry and growing demand for generics in fast-growing
emerging markets has made the sector more attractive.
Former GlaxoSmithKline <GSK.L> executive Viehbacher said
earlier this month he wanted to diversify Sanofi via small and
mid-sized acquisitions in generics, vaccines and
over-the-counter drugs.
The aim is to make Sanofi a low-risk healthcare business
with a global footprint and to restore confidence in its growth
prospects, despite the potential loss of more than a fifth of
its current drug sales due to patent losses by 2012.
Zentiva shares opened at 1,098 crowns on Wednesday.
The stock has lost 2 percent since Sanofi raised its
original 1,050 crown per share bid in September while the main
Prague PX <> index has slumped 50 percent as the global
financial crisis sweeps through central Europe.
In October, some shareholders raised their stake in Zentiva
in apparent opposition to the Sanofi bid.
PPF started its bidding war over Zentiva in May, when it
said it would bid 950 crowns per share. It withdrew the offer
after Sanofi counterbid 1,050 crowns a share. Sanofi later
raised its bid to 1,150 crowns.
(Additional reporting by Marcel Michelson; writing by Ben
Hirschler; Editing by Rupert Winchester)
