July 18 (Bloomberg) -- Zentiva NV rejected as too low French drugmaker Sanofi-Aventis SA's $2.02 billion-offer for the shares of the Czech generic-drug maker that it doesn't already own.

The bid, made last week, doesn't value Zentiva's improving operations or the potential of its eastern European markets, the company said today in a Regulatory News Service statement.

Sanofi already owns a 24.9 percent stake and published its 1,050 koruna a share bid on July 11. The offer values Zentiva at 40 billion koruna ($2.7 billion), Paris-based Sanofi said last week. PPF Group NV, the Czech Republic's biggest closely held financial group, is offering 950 koruna a share, valuing Prague- based Zentiva at $2.3 billion. Shareholders have until Sept. 19 to decide on the offer, Sanofi spokesman Jean Marc Podvin said.

``The board has reached the conclusion that the Sanofi offer is not in the best interests of Zentiva, its shareholders, and all its other stakeholders,'' the Czech drugmaker said in the statement.

The French drugmaker's offer is ``in the best interest of the shareholders,'' Podvin said in an interview. ``The proposed price reflects a fair value of the company.''

Zentiva fell 2.8 koruna, or 0.3. percent, to 1,124 koruna at the close of trading in Prague. The stock has risen 16 percent this year. Sanofi rose 1.09 euro, or 2.4 percent, to 45.69 euros in Paris.

Sanofi wants Zentiva to expand into eastern Europe's ``branded generic'' market, where copies of original treatments are more profitable than in western Europe. Its bid is subject to obtaining just more than 50 percent of Zentiva shares. PPF owns almost 20 percent of Zentiva and wants a stake that will let it influence the drugmaker's day-to-day operations.

To contact the reporter on this story: Trista Kelley in London at

Last Updated: July 18, 2008 11:46 EDT