UPDATE 1-Mining group Eramet Q1 sales rise 37.9 percent

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PARIS, April 29 (Reuters) - French mining group Eramet (ERMT.PA) reported a 37.9 percent rise in first quarter sales on Tuesday, led by soaring metal prices, and gave an upbeat outlook.

Sales rose to 1.118 billion euros ($1.75 billion), driven by a 92.9 percent surge in its manganese division.

Eramet operates mines in New Caledonia, Gabon and Indonesia and is the world's sixth-largest nickel producer. In February, the company posted an 82 percent jump in its 2007 net profit, driven by the spike in metals prices.

Eramet reported a "favourable outlook" for 2008 and said that its first half current operating income should be higher than that reported in the second half of 2007.

Eramet shares closed at 581.89 euros on Monday, giving the company a stock market value of around 15 billion euros.

The stock has risen around 66 percent since the start of 2008, building on a 188 percent increase in its share price last year, partly due to bid speculation.

Talk of a pending ownership change at Eramet has swirled in recent months, with rumours that steelmaker ArcelorMittal (ISPA.AS) (MT.N) could be interested in acquiring a 37 percent stake held by the Duval family.

Eramet Chief Executive Patrick Buffet said in February that he had not been informed of any plans by shareholders to alter their stakes and reiterated that Eramet's ownership structure should remain anchored in French or European soil.

(Reporting by Sudip Kar-Gupta; editing by Rory Channing)