Wires

French and Benelux stocks-Factors to watch on Oct 8

PARIS, Oct 8 (Reuters) - Below are company-related news andstories from French and Benelux media which could have an impacton the region's markets or individual stocks.

CAC-40 futures FCEc1 are down 0.61 percent at 0650 GMT EADS

Britain will block the proposed $45 billion merger betweenEADS and BAE Systems if key "red line" priorities arenot met, defence minister Philip Hammond said on Sunday, justthree days before a deadline for detailing the deal.

BAE Systems insists there is "no magic number" for Frenchand German government shares in a possible merger with EADS, butU.S. experts say anything over 10 percent could ruin the chancesof winning approval from U.S. regulators.

PPR

The French luxury group is preparing to sell book and CDretailer Fnac as part of a strategy to concentrate on luxury andsports brands and will present options including a stock marketlisting and a spin-off, a source familiar with the matter said,confirming media reports.

VIVENDI

The telecoms to media conglomerate is exploring the sale ofits 53 percent stake in Morocco's largest telecoms operator,Maroc Telecom , the Financial Times reported. Thenewspaper said Vivendi was talking to bankers from CreditAgricole and Lazard about hiring them to gauge interest in asale of the stake, which could be worth more than 4 billioneuros.

SANOFI

The drugmaker's plan to restructure its research operationsin France could lead to more job losses than the 900 layoffsmooted by the company, union representatives said.

The drugmaker said the results of a late-stage study of itsZaltrap drug showed a "statistically significant improvement inoverall survival" in patients with colon cancer.

AIR FRANCE-KLM

Franco-Dutch airline Air France-KLM, Abu Dhabi flag carrierEtihad Airways and Germany's Air Berlin plan to start acode-share agreement offering passengers access to some of eachother's services from Oct. 28, the airlines said.

DEXIA

The troubled Franco-Belgian bank is working on raising cash,its chief executive told Belgian business newspaper L'Echo.

TNT EXPRESS

The Dutch delivery group said it has appointed a new interimchief financial officer after the company, which U.S. rival UPS

wants to buy, saw its chief executive leave last month.

NETRECO

The Dutch food group said it has agreed to buy 75 percent offish- and shrimp-feed company Gisis for 78 million euros fromLatin American company Expalsa.

KBC

The Belgian banking group said it would stop all activitiesthat were not part of its core markets of Belgium, the CzechRepublic, Hungary, Slovakia and Bulgaria.

FRENCH ECONOMY

The French economy is believed to have shrunk 0.1 percent inthe third quarter of the year, according to a September surveyby the Bank of France which showed activity declining in bothservices and industry.

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Keywords: FRANCE BENELUX/STOCKS