UPDATE 1-St-Gobain agrees to Wendel stake increase -sources

(Recasts with Saint-Gobain, sources, more details)

By Marie Maitre

PARIS, Feb 10 (Reuters) - Saint-Gobain (SGOB.PA: Quote, Profile, Research) has agreed in principle to investment company Wendel (MWDP.PA: Quote, Profile, Research) raising its stake in the French building materials group and being represented on its board, sources close to the matter said on Sunday.

"Wendel's demands have been accepted," a source close to the situation told Reuters, while a different source familiar with the matter confirmed Wendel's board representation request had been accepted.

French newspaper La Tribune reported on Sunday, in its online edition, that Saint-Gobain had agreed to Wendel raising its stake to 21.5 percent from 17.87 percent.

The Paris-based company also agreed to Wendel's request for three board seats and the creation of a strategic committee to be chaired by a representative of the French investment company, La Tribune said, citing sources.

A Saint-Gobain spokeswoman confirmed a board meeting had taken place on Friday morning on the "modalities of Wendel joining the board of directors."

"Saint-Gobain hopes to reach a conclusion quickly with the signing of an agreement to which Wendel also aspires," she said.

Wendel confirmed having received a reply to its demands on Friday, but did not comment on its content.