March 5 (Bloomberg) -- The Euro 2008 championship may end up with the Czech Republic and Italy in the final, a UBS AG analyst forecast, using the same model that correctly predicted a win for the Italians in the World Cup two years ago.

The European Championship, co-hosted by Switzerland and Austria and scheduled to start on June 7, could end with a draw and a penalty shoot-out, analyst Andreas Hoefert said in a report published today. The Czech Republic has a 51 percent chance of winning it, according to his forecast.

``Something like this has already happened in 1976, when Czechoslovakia beat Germany, which was the world champion and the favorite,'' Hoefert wrote. ``Wouldn't it be a further nice chapter in the long history of football if the Czechs again beat a world champion in the European championship?''

Hoefert forecast that the Czech Republic would win against Switzerland and Italy would beat the Netherlands in the semifinals. Germany, currently the favorite to win the tournament, according to U.K. bookmaker Ladbrokes, has a 75 percent chance of being eliminated by the Swiss should both teams advance to the second round, he said.

Ladbrokes says the odds of Germany winning are 7-2, meaning a $20 winning bet would pay $70. Italy is placed second at 6-1, while odds for the Czech Republic to win are 14-1, according to the bookmaker.

To contact the reporter on this story: Elena Logutenkova in Zurich at elogutenkova@bloomberg.net

Last Updated: March 5, 2008 08:06 EST