Bouygues may own 35 pct of Areva-Alstom -paper

PARIS, Sept 11 (Reuters) - The French government, which is reviewing options for state-controlled nuclear group Areva (CEPFi.PA), favours a scheme under which Bouygues (BOUY.PA) would own 35 percent of a new company formed by merging Areva with Alstom (ALSO.PA), French newspaper Le Canard Enchaine says.

"The favoured scenario of the Elysee at this stage is as follows: Areva and Alstom would merge and a holding would be created," the paper said, citing no sources.

"With 35 percent of the capital, Bouygues, which would sell its mobile phone (unit), would be the top shareholder, the state retaining 18 percent and the rest of the capital being listed," it added.

Reuters received an advanced copy of the newspaper which is published on Wednesday.

Telecoms and construction group Bouygues declined to comment and the French Economy Ministry could not be immediately reached for comment.

A source close to the situation had told Reuters earlier on Tuesday that the French government was reviewing its options for Areva but that the process was at a preliminary stage.

The source was reacting after daily newspaper Les Echos said France had hired HSBC (HSBA.L) bank and consultancy firm McKinsey to explore options for Areva.

Les Echos said, citing no sources, the French government favoured a tie-up between Areva and industrial power plant and high-speed train firm Alstom, a merger that would create a group with a market capitalisation of 40 billion euros ($55 billion).

This helped to push Alstom shares up 6.5 percent on Tuesday.

Asked to comment on the Les Echos report, a spokesman for President Nicolas Sarkozy confirmed on Tuesday that France's new head of state was "studying the future of the French energy sector" but said the government was not under pressure to take decisions quickly.

The French state owns 5.2 percent of Areva directly, while other public entities hold 88.2 percent.

Bouygues has said it wants to play a role in the construction of a French nuclear industry champion, and Alstom has said it would examine an industrial partnership with Areva. Both groups have said they were not interested in building a minority stake in Areva.

(Additional reporting by William Emmanuel)

((Writing by Dominique Vidalon, editing by Mike Elliott; Reuters Messaging: rm://dominique.vidalon.reuters.com@reuters.net; email: dominique.vidalon@reuters.com; Telephone: +33 1 49495432))

($1=.7233 Euro) Keywords: BOUYGUES AREVA/

(C) Reuters 2007. All rights reserved. Republication or redistribution ofReuters content, including by caching, framing or similar means, is expresslyprohibited without the prior written consent of Reuters. Reuters and the Reuterssphere logo are registered trademarks and trademarks of the Reuters group ofcompanies around the world.nL11578230