Battle for control of Czech Rep's Zentiva

A struggle has started for the control of the Czech drugmaker Zentiva, currently in the hands of France's Sanofi-Aventis. The Netherlands  financial group PPF is seeking to acquire the company and has offered  950 koruna per share which values the enterprise at 1.4 billion euros  ($2.17 billion). This opening offer is understood to have been rejected.  Sanofi-Aventis is closely linked with the present management and has  two nominees on the board, as well as holding a 24.9% stake. However,  PPF has now purchased 19.1% of the equity via the Italian Generali  group and is sitting in second position behind the European drugmaker.  Zentiva has recruited Merrill Lynch as advisers and has sent a letter  to shareholders urging non-acceptance of the offer. PPF still has to  make a formal bid for Zentiva and will require the approval of the Czech  authorities before doing so. Zentiva is having problems domestically  because of government health care economies, and profits and sales  growth have slowed recently.