STOCKS NEWS EUROPE-EDF up on tariff rise prospects

Shares in EDF (EDF.PA) rise as much as 5.4 percent after France's daily Les Echos reports that the French government ecology and energy ministry had proposed allowing the power company to raise tariffs by 1.9-5 percent.

But Economy Minister Christine Lagarde tells a press conference that the process for reaching a decision on prices has not yet begun and that the figures mentioned by Les Echos are unfounded.

"It would be very good news for EDF if it were confirmed," one trader says, adding that only a few analysts have forecast an increase. Shares in EDF are 4.6 percent higher at 33.47 euros, putting them among the leading gainers on a 1.3 percent firmer French benchmark CAC 40 index .FCHI.

Reuters Messaging rm://marcel.michelson.reuters.com@reuters.net