Zentiva offered 1.37 euros ($1.62/40 Kč) a share for the stake in Sicomed, which is 37 percent more than the stock was trading at in September and October. It already controls 51 percent of the company.

Analysts say Zentiva's bid is likely to be a success because it has offered a price so far above where the stock has been trading. If the deal goes through, Zentiva's investment in Sicomed would total $200 million (5 billion Kč), according to Chief Financial Officer Petr Šulc.

A successful acquisition would go a long way toward fulfilling the company's promise to shareholders to expand into regional markets.

Zentiva made the pledge during its initial public offering (IPO) in June 2004. The company went public in order to raise financing for its expansion plans. It is considering further acquisitions in the region, says Šulc.

If the acquisition is a success, Zentiva will become the market leader in Romania, the third country after the Czech Republic and Slovakia where the company has a dominant position. Zentiva controls more than 50 percent of the Czech generic drug market and boasts more than 10 billion Kč in annual revenue.

In terms of sales volume, Sicomed accounts for one-quarter of the Romanian market.

Analysts are labeling the acquisition an important step for Zentiva. Besides giving the company a part of the fast-growing Romanian drug market, it will also boost the share of exports in Zentiva's sales portfolio.

"Exports are the growth driver for Zentiva right now," said Bram Buring, an analyst with Wood & Co. He added that Zentiva will finance the acquisition with debt, which increases the value of the company.

Šulc said the company would see positive results from the acquisition as early as next year.

"The acquisition will have a positive effect on Zentiva's share yield and increase our growth," he said.

Zentiva would delist Sicomed from the Bucharest Stock Exchange.