CORRECTED-UPDATE 2-Veolia strikes deal for Hong Kong Tramways

(Corrects to remove references to loss-making in 9th paragraph and subhead))

* Veolia to buy 50 pct of HK tram operator

* No financial details given

* To operate tram on daily basis

* Has option to buy remainder of company (Adds details, background)

By Stephen Aldred and Sui-Lee Wee

HONG KONG, April 7 (Reuters) - French water, waste and transportation giant Veolia Environnement (VIE.PA) will buy 50 percent of Hong Kong's iconic tram system and take over operation of the 105-year-old network under a deal unveiled on Tuesday.

Veolia said it has the option to buy the remaining stake in the tram operator from conglomerate Wharf Holdings (0004.HK), confirming a Reuters report, but has no immediate plans to do so.

Bruno Charrade, head of operations for Veolia Transport China, said running the Hong Kong tram would help provide know-how as it builds an urban rail business in China.