(Adds Zentiva reaction, analyst, updates share price)
By Jana Mlcochova
PRAGUE, June 17 (Reuters) - Czech financial group PPF
launched its previously notified 950 crown per share bid for
Czech drugs maker Zentiva <> on Tuesday, but Zentiva
said shareholders should take no action for now.
The company, a dominant generic drugs maker in the Czech
Republic and Slovakia with subsidiaries in Romania and Turkey,
said it would consider the bid -- which is below the current
market price -- and call a general meeting.
"The price level was set with regard to the bidder's aim to
gain such a stake in the company which would ... represent a
controlling share on the company's voting rights," PPF, a large
minority shareholder acting through Anthiarose Limited, said in
the offer.
Zentiva shares have added 11.2 percent since PPF said in May
it planned to launch the bid, which values the firm at 36.2
billion crowns ($2.32 billion), a 1.9 percent premium at the
time of the offer.
The stock traded 0.3 percent up at 1125 GMT on Tuesday at
1,044 crowns, lagging the main Prague PX <> index which stood
2.2 percent higher.
"(PPF) may change the level of the offered price during the
time of the offer so that the changed level of the bid price is
more advantageous," the bidder said.
PPF together with allies including Generali <GASI.MI>
controls 19.2 percent of Zentiva. Sanofi-Aventis <SASY.PA> of
France holds 24.9 percent in the drugmaker.
PPF, controlled by the Czech Republic's richest businessman,
Petr Kellner, has said it is acting in concert with PPF Generali
Holding, its insurance joint venture with Italy's Generali
<GASI.MI> on the takeover bid.
PPF said it may withdraw the bid if Zentiva's share price
falls below 800 crowns or if another, higher offer is made
during the bid period. It may also withdraw the bid if Zentiva
takes measures aimed at thwarting or complicating PPF's plans.
ZENTIVA SAYS HOLD OFF
"The board of Zentiva will consider the full details of the
offer, which are now publicly available, and will publish its
position statement in due course," Zentiva said in a statement.
"In the meantime shareholders are strongly advised to take
no action in regards to the published offer."
Analyst Milan Vanicek of brokerage Atlantik FT said
investors would likely heed the call.
"As the current market price of Zentiva is around 1,040
CZK/share, we continue to believe that investors will use the
offer only to a very limited degree," he said.
He said the offer may be accepted by investment group J&T,
which holds 7.6 percent and has said it was evaluating the bid.
Zentiva shareholders rejected a board nomination by PPF at a
general meeting on June 5, but PPF said it would keep trying to
get a seat.
(Additional reporting by Jan Lopatka; Editing by Quentin Bryar)
