UPDATE 2-French Sovereign Fund takes 5 pct of Nexans

* FSF bought shares for around 60 mln euros

* Says will not raise stake further

* To get board representation

* Says will support Nexan acquisition policy

* Nexans stock up 1.8 pct

(Adds CEO quotes, details, background)

By Astrid Wendlandt

PARIS, July 9 (Reuters) - France's Sovereign Fund has acquired 5 percent of world cable industry leader Nexans (NEXS.PA), addressing the company's search for a new long-term investor.

Nexans had said in recent months it was keen to further stabilise its shareholder base after opening up its capital to Chilean cable group Madeco MAD.SN (MAD.N), which took a 9 percent stake.

The French Sovereign Fund said on Thursday it had built up its position by acquiring shares in the market for about 60 million euros and did not intend to raise its holding further.

Nexans, which was keen to get a long-term partner owning between 10-15 pct of the company, said the fund would get board representation.

The fund said it would support Nexans's acquisition policy. Spun out of Alcatel in 2001, Nexans wants to reduce its exposure to economic cycles and focus on energy and infrastructure sectors.

"Our intention is to support, accompany the company in its strategic development, its targeted acquisitions," French Sovereign Fund Chief Executive Gilles Michel said in a conference call with jouranlists.

At 0713 GMT, Nexans stock was trading up 1.8 percent at 36.9 euros.

As it announced the deal, Nexans confirmed its financial targets and said it was not seeing any improvement in trading.

"Markets remain difficult," Nexans Chief Executive Frederic Vincent said in a conference call. "We do not see any operational improvement today."