UPDATE 2-Thomson SA shares jump on state fund support hopes

* Stock up over 20 pct

* Traders cite talk French state fund may buy stake

* Thomson confirms fund support still an option

* However, spokeswoman says nothing new to report

(Adds details on govt fund, Thomson SA)

By Dominique Vidalon

PARIS, Jan 12 (Reuters) - Shares in Thomson SA TMS.PA rose over 20 percent on Monday, on renewed talk a French government bailout fund could take a stake in the financially stretched media company. A spokeswoman said support from the government fund, which was launched to support small- and medium-sized, and other strategic companies, was still an option, but there was nothing new to report at this stage. "At this stage it's still an option. It is something (among other options) that we are working on," the spokeswoman said.

Thomson SA, a 5.6 billion euro annual sales supplier of DVDs, video and telecom equipment, competes in some sectors with Motorola MOT.N, Siemens (SIEGn.F), or Sony (6758.T).

In December, Le Figaro newspaper reported that the government had been mulling using some of the 20 billion euro ($26.78 billion) fund to help the group, whose market cap now barely exceeds 300 million euros after its stock slumped 90 percent last year.

A spokeswoman for The Fonds Strategique d'Investissement (FSI), declined to comment on Monday on the rumours involving Thomson and the FSI.

The FSI, which is headed by former PSA (PEUP.PA) executive Gilles Michel, held its second board meeting last week. officially to put the finishing touches to its management team.

A source close to the matter said the fund had already received over 20 dossiers for possible review.

Thomson in October vowed to restructure or sell unprofitable businesses to bolster profits, generate cash and cut debt as many investors had been pressing for a simplification of its structure and an exit from loss-making units.

At the end of last year it completed the sale of its digital equipment product line and announced it was closing its loss-making retail telephone business in North America.

Some observers expect Thomson to make further announcements, possibly before the end of the month. The group has yet to communicate its 2009 financial releases calendar.

By 1119 GMT, Thomson SA shares were up 23.40 percent at 1.45 euros, having set a session-high of 1.44 euros. ($1=.7467 Euro) (Additional reporting by Blaise Robinson and Juliette Rouillon in Paris; editing by Simon Jessop)