French banks bid to advise Serbia on drug co sale

BELGRADE, Feb 27 (Reuters) - The government of Serbia shortlisted three French banks on Friday to advise it on the sale of Galenika, the last non-privatised pharmaceuticals company in the Balkans. The shortlist contains BNP Paribas (BNPP.PA), Societe Generale SA bank (SOGN.PA) and Rothschild & CIE, who lead consortia together with law offices from Serbia, Romania and Slovakia, the Privatisation Agency said.

It did not say when it would announce the winning bidder.

Galenika is Serbia's second-largest producer and exporter of pharmaceuticals, including antibiotics, cardiovascular drugs and veterinary products.

Its general manager Nenad Ognjenovic said earlier this week the company posted a 7.2 million euro profit in 2008 and hoped for a similar result in 2009.

Galenika held a 15 percent share in a market of an estimated total value of $1.17 billion in 2008.

Last October, the government announced plans to sell an 80 percent stake in Galenika through an initial public offering (IPO) by mid-2009.

Galenika's IPO has been part of a wider plan to privatise major state-held assets through IPOs and by distributing free shares to about 4 million people. (Reporting by Aleksandar Vasovic; Editing by Gordana Filipovic/Will Waterman)