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UPDATE 1-Luxury conglomerate PPR to sell Fnac - newspaper

(Updates with detail from Le Figaro)

PARIS, Oct 7 (Reuters) - French luxury group PPRis preparing to sell its book and CD retailer Fnac and onlinefashion store La Redoute, Le Journal du Dimanche wrote onSunday, as part of a strategy to concentrate on luxury andsports brands.

The paper cited several unnamed sources saying the board ofthe company headed by Chief Executive Francois-Henri Pinaultwould meet this week to approve the plan.

A PPR spokesman declined to comment on the report.

The company wants to exit its retail operations in order tofocus on other high-profile brands, which currently includefashion labels Gucci and Yves Saint Laurent and sports namesPuma and Volcom.

Pinault said last week that PPR would make an announcementabout the planned sale of its Redcats mail order business beforedisclosing third-quarter results on Oct. 25.

On its website, Le Figaro confirmed the JDD report but addedthat it would involve a spin-off in which PPR shareholders, werethey to approve the deal, would receive shares of a newly listedcompany, FNAC, on the French stock exchange.

That could occur as early as the end of the first half of2013, if approved, Le Figaro said.

Fnac, which operates about 154 stores around the world, haslong been a headache for PPR as consumers turn to the Web to buyboth music and books.

Early this year, Fnac announced plans to cut 80 millioneuros ($105 million) from its budget as it axed 500 jobs inFrance and abroad.

PPR has similarly tried to streamline La Redoute, cuttingjobs by nearly a half since late 2008.

($1 = 0.7657 euros)

(Reporting by Alexandria Sage; Editing by Mark Potter, BernardOrr)

((alexandria.sage@thomsonreuters.com)(+33 1 4949 5219)(ReutersMessaging: alexandria.sage@thomsonreuters.com@reuters.net))

Keywords: FRANCE PPR/