UPDATE 1-Veolia surges on state stake talk -traders


(Adds details, quotes, context) PARIS, Feb 26 (Reuters) - Shares in Veolia rose 9 percent on Thursday afternoon on market talk the French government could take a stake in the French water and sewage company, Paris-based traders said. "We do not comment on market rumours," a Veolia spokeswoman said, while a spokesman for France's strategic investment fund (FSI) declined to comment. At 1505 GMT, Veolia shares were up 8.5 percent, while the CAC 40 was up 2.1 percent. "The French ...

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