UPDATE 1-LVMH to take stake in ethical fashion brand Edun

(Corrects 7th paragraph to show Diageo has 34 pct, not 66 pct stake in Moet Hennessy)

* LVMH to take stake in ethical fashion brand Edun

* CEO says Diageo not looking to sell wine and spirit stake

(Adds detail)

PARIS, May 14 (Reuters) - Luxury goods group LVMH (LVMH.PA) is to take a stake in Edun, the ecological and ethical fashion brand founded by Irish singer and campaigner Bono and his wife, the French company's CEO said on Thursday.

"We are going to take a stake in Edun, an ecological and ethical brand," LVMH CEO Bernard Arnault told shareholders at LVMH's annual shareholders' meeting in Paris. He did not give any financial details or specify the size of the stake.

Edun was launched in 2005 by Bono and his wife Ali Hewson, with the aim of encouraging sustainable employment in developing regions, especially Africa.

Bono, whose real name is Paul Hewson, is famous for fronting the band U2 and for his extensive campaigning for African humanitarian causes, which has led to three Nobel Peace Prize nominations.

WINE AND SPIRIT IMPROVEMENT

LVMH's Arnault also told shareholders that the company, which owns Dom Perignon champagne, watch brand Tag Heuer and fashion houses Louis Vuitton and Celine, had seen "a small improvement in its wine and spirits activities".

Like-for-like wine and spirit revenues fell 22 percent in the first quarter, LVMH said last month. [ID:nLM938857] Arnault added that Diageo (DGE.L), which owns a 34 percent stake in Moet Hennessy, LVMH's wine and spirits unit, was not planning to sell its stake.

"To my knowledge, our partner is not looking to sell its stake, so the question is not relevant," he said.

For a DEALTALK on Diageo and Moet Hennessy see [ID:nLM154653]

(Reporting by Astrid Wendlandt; Writing by Helen Massy-Beresford, Editing by Marcel Michelson)