2nd UPDATE:PPF Pulls EGM Petition,Mum On Sanofi's Zentiva Bid

The second-largest shareholder in Czech generic drug maker Zentiva NV (BAAZEN.PR) Monday called off its petition for an extraordinary general meeting, removing at least one hurdle in Sanofi-Aventis SA's (2057.FR) EUR1.8 billion takeover offer for Zentiva.

Czech financial company PPF Group NV with Generali PPF Holding BV, the Eastern European joint venture of PPF Group and Italian insurer Assicurazioni Generali SpA (G.MI), together hold a 24.3% stake in Zentiva and earlier bid CZK950 per share for Zentiva, which was turned down by Zentiva's management.

Units of PPF and Generali PPF Holding withdrew a petition to the district court in Amsterdam to convene an EGM, saying that Monday Zentiva answered questions about commitments made by Zentiva regarding the Sanofi offer, PPF's spokesman Alexej Bechtin said in a statement.

Dow Jones Newswires asked PPF if withdrawing the petition for an EGM means PPF will support the Sanofi bid and sell its stake.

"No, it does not - we do not comment on our further steps regarding the Sanofi bid. This is just a reflection of today's EGM where our previous questions were satisfactorily answered," Bechtin said.

Earlier Monday Zentiva's board reiterated their support for Sanofi's CZK1150 per share takeover offer at an EGM.

The offer from Sanofi, the largest shareholder in Zentiva with a 24.9% stake, is open until Feb. 20.

At 1511 GMT, Zentiva shares were up 1.3% at CZK1142, amid a higher overall market.

The European Commission cleared the French pharmaceutical giant's move Feb. 4, provided Sanofi-Aventis sell 15 drugs in central and eastern Europe.

Company Web site: www.zentiva.cz

-By Sean Carney, Dow Jones Newswires; [phone]; [e-mail]