Renault rallies after France reduces stake

PARIS, Nov 3 (Reuters) - Shares in Renault rose on Friday after France pared back its holding to the 15 percent level that preceded a 2015 power struggle with the carmaker's CEO Carlos Ghosn, removing a residual irritant in their relationship.

Renault, which also has a stake of about 40 percent in Nissan, was up 4.4 percent at 90.40 euros in early trading.

The French state said it had sold a 4.7 percent stake in the company for 1.2 billion euros ($1.4 billion), implying a price of 86.60 euros per share in the disposal.

Renault is buying back 10 percent of the shares being sold by the state to hand out stock awards to current and former employees.

The sale could help to ease long-standing tensions between Ghosn, who also heads alliance partner Nissan as chairman, and the government of French President Emmanuel Macron. ($1 = 0.8586 euros) (Reporting by Sudip Kar-Gupta; Editing by David Goodman)