UPDATE 1-Cemex sells 9.5 pct stake in telecoms firm

(Updates with quote, background)

MONTERREY, Mexico, March 31 (Reuters) - Mexico's Cemex, the world's No. 3 cement producer, said on Monday it sold its 9.5 percent stake in local telecoms company Axtel (AXTELCPO.MX), generating $257 million in cash.

Cemex (CMXCPO.MX)(CX.N) said the sale was made via a three-year forward contract on Axtel's stock price and should allow Cemex to benefit from future stock appreciation.

Credit Suisse and BBVA handled the deal, Axtel said.

"The stock sale through the proposed mechanism will allow us to obtain $257 million in cash that will be used to reduce debt," Chief Financial Officer Rodrigo Trevino said in a statement.

Monterrey-based Cemex last year paid $16 billion for Australian rival Rinker and aims to cut its debt to 2.7 times earnings before interest, taxes, depreciation and amortization (EBITDA) in mid-2009. (Reporting by Robin Emmott; editing by Gunna Dickson)