Sanofi-Aventis announced that is acquired a 24.9% stake in Zentiva for EUR430m, which equals CZK1,298 per share from Warburg Pincus and Management. We believe that Warburg Pincus does not have any stake in Zentiva at this point while management's stake was reduced to c 6% from previous 12%. The transaction implies 2006E EV/EBITDA of 12.9x and 2007E EV/EBITDA of 10.3x and P/E 2006E of 22.8x and P/E 2007E of 18.8x. The thresholds for buy-outs are 40%, 66% and 75%, nevertheless, the lowest threshold of 40% is flexible based on the number of other minority shareholders and their stakes in a company. Therefore, we do not expect Sanofi-Aventis to be legally obliged to launch a buy-out offer for Zentiva's minorities, nevertheless, the option cannot be completely ruled out. The sale of Warburg Pincus's stake removes the risk of further placements, which should have a positive impact on the stock. We reiterate our Buy recommendation.