French Stocks: Air France, Areva, Dexia, Peugeot and Renault

By Adria Cimino

Sept. 4 (Bloomberg) -- France’s CAC 40 Index advanced 24.73, or 0.7 percent, to 3,578.24 at 1:09 p.m. in Paris, paring this week’s drop to 3.1 percent. The SBF 120 Index added 0.7 percent.

The following shares rose or fell in Paris. Stock symbols are in parentheses.

Air France-KLM Group (AF FP), Europe’s biggest airline, gained 15 cents, or 1.5 percent, to 10.12 euros, rebounding from four days of losses. Air France said it plans to cut 1,500 jobs and reduce cargo capacity by 15 percent. The airline also plans to cut passenger activity by 5 percent.

Areva SA (CEI FP) climbed 8.65 euros, or 2.3 percent, to 388.25, gaining for a third day. China Investment Corp. is studying the possibility of making a bid for Areva SA’s transmission and distribution unit in partnership with other investors, French daily Les Echos reported, without citing anyone. The fund may also take a stake in Areva, according to the newspaper.

Toshiba Corp. may pay $5.4 billion for the power distribution and transmission unit of Areva SA, Reuters said, citing Japanese news agency Jiji Press.

Clasquin (ALCLA FP) sank 1.20 euros, or 8.6 percent, to 12.80, the biggest drop since February. The company said its first-half gross margin fell 4.9 percent compared with a year earlier. Oddo Securities cut its recommendation on the transporter of freight to “reduce” from “add.”

Dexia SA (DEXB BB) added 7 cents, or 1.3 percent, to 5.79 euros, gaining for a second day. The company is looking for a buyer for its unprofitable French insurance unit Epargne and Pensions, De Standaard reported, citing unidentified people.

PSA Peugeot Citroen (UG FP) jumped 1.20 euros, or 6.5 percent, to 19.86 euros, after four days of declines. Philippe Varin, chief executive officer of the automaker, is actively considering an alliance with Mitsubishi Motors Corp., French newspaper La Tribune said, without attribution.

Varin is seeking a partner outside of Europe to make the company more international, the newspaper said.

UBS AG raised its recommendation on shares of Europe’s second-biggest carmaker to “neutral” from “sell.”

Renault SA (RNO FP), France’s second-largest carmaker, climbed 1.25 euros, or 4.3 percent, to 30.05.

To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net.