Wires

UPDATE 1-PPR to list Fnac retail unit in 2013

* PPR focusing on luxury and sports brands

* Redcats disposal process to take several months

* PPR shares close 0.8 pct higher

(Adds background, analyst comment, share price)

By Astrid Wendlandt PARIS, Oct 9 (Reuters) - French retail and luxury group PPR

confirmed plans on Tuesday to spin off its Fnac unitand seek a separate listing for the CD and books retailer in2013 as part of long-running efforts to recentre its business onluxury and sports brands.

Having failed to find a buyer for Fnac, PPR is keen tooffload the struggling retailer at a time when it is starting toreap benefits from a restructuring and efforts to revamp itsoperations.

While PPR is keen to present Fnac as a turnaround story toshareholders, some analysts said PPR was also looking toseparate the retailer from its accounts at a time whenconsumption trends in France were worsening.

"There is a risk that Fnac sales continue to fall in themonths to come," one Paris-based analyst said.

PPR, which owns luxury brands Gucci and Yves Saint Laurentand sports brands Puma and Volcom, presented the project to Fnacworkers earlier on Tuesday, union sources said.

The transaction would have to be approved at PPR's nextannual general meeting in the spring.

PPR shares closed 0.8 percent higher at 125.10 euros for arise of about 13 percent this year.

The company added that the process for the disposal of itsRedcats mail order business was under way and that all optionswere being considered.

"The whole process will take several months and announcementsare likely to be issued in the coming weeks," PPR said.

Chief Executive Francois-Henri Pinault said last week thatPPR expected to give an update on the Redcats sale before itpublishes third-quarter sales on Oct. 25.

(Editing by James Regan)

((astrid.wendlandt@thomsonreuters.com)(33149495440)(Reuters

Messaging: astrid.wendlandt.thomsonreuters@reuters.net))

Keywords: PPR FNAC/