Czech generic drug maker Zentiva NV (BAAZEN.PR) Friday said it will issue 986,520 new ordinary shares to cover stock options ahead of Sanofi-Aventis SA's (2057.FR) expected EUR1.8 billion takeover of the company, according to a Zentiva statement.

"The new shares will cover in-the-money employee stock options which have been conditionally exercised by existing and former employees of Zentiva group in anticipation of a change-of-control event: the successful completion of the recommended takeover by Sanofi-Aventis," the statement said.

The subscription share price will be 1,150 koruna ($51.5) a share, and all new shares will be tendered into the Sanofi-Aventis offer, Zentiva said.

It added that if the Sanofi-Aventis offer doesn't proceed to settlement, the shares won't be issued.

Zentiva Web site: www.zentiva.cz

-By Sean Carney, Dow Jones Newswires; +420 222 191 375; sean.carney@dowjones.com