UPDATE 2-Addax says it held talks with potential suitor

* Company responds to report bid mulled

* Says it held "preliminary discussions"

* Shares rise 8.9 percent (Adds analyst comment and detail; updates shares. In U.S. dollars unless noted.)

CALGARY, Alberta, June 8 (Reuters) - Addax Petroleum Corp AXC.TO said on Monday it held talks with a would-be buyer of the oil company, sending its shares up 11 percent.

Addax, which operates in the Middle East and West Africa but is based in Geneva and lists its shares on the Toronto Stock Exchange, said in release it has "held preliminary discussions with third parties expressing an interest in a potential transaction with the corporation."

The company issued the release in response to newspaper reports that Sinopec (600028.SS) , China's state-owned oil company, was considering an $8 billion bid for Addax.

The report from the South China Morning Post said China National Petroleum Corp [CNPET.UL] and CNOOC Ltd (0883.HK) were also interested in acquiring Addax.

Addax is the latest oil producer to report a takeover approach as oil prices strengthen and economic fears moderate. Last week British-based Heritage Oil (HOIL.L) said it was in early-stage talks while Dubai's state-owned Emirates National Oil Co, said it would look to add to its majority stake in London-listed Dragon Oil (DGO.L).

Addax did not specify which company it was in talks with and said there was no guarantee the negotiations would result in a transaction. Still, China's oil companies have been voracious acquirers of international oil producers as they look to add reserves and production to sate rising demand.

"All three of the national Chinese oil companies are likely buyers of oil assets and all three are present in Nigeria where Addax has its core operations," said Jamie Somerville, an analyst with Genuity Capital Markets."

Addax produced 134,730 barrels of oil a day in the first quarter, with more than three quarters of its output coming from properties in Nigeria.

Any would-be bidder for the company would need the backing of Addax Chief Executive Jean Claude Gandur to go ahead, since he holds a controlling interest in the company, Somerville said.

"The decision comes down to one person and it comes down to price," Somerville said.

Addax shares rose C$3.20, or 8.9 percent, to C$39.20 on Monday afternoon on the Toronto Stock Exchange. (1=$1.12 Canadian) (Reporting by Scott Haggett; Editing by Frank McGurty)