French utility Veolia Environnement (VE) remains interested in a tie-up with French public transport operator Transdev, a company spokesman said Monday, adding such a move wouldn't involve Veolia disbursing any cash.

French state-owned bank Caisse des Depots et Consignations, which owns 70% of Transdev, said earlier Monday it hasn't made a decision on what it will do with its stake.

The CDC in June said it would make a decision regarding its stake in the company following the Paris underground operator RATP's decision to sell its minority stake in Transdev.

Veolia is awaiting the CDC's decision, the company spokesman said Monday.

"Following a number of rumors in the press, the Veolia Environnement group notes that it has not proposed that CDC increase its shareholding in its share capital through a contribution of Transdev," Veolia said in a press statement issued later Monday.

Le Figaro newspaper had reported CDC, which already has a 10% stake in Veolia, would exchange its stake in Transdev for a larger stake in Veolia.

Last month, Veolia said it could be interested in a tie-up with Transdev, with a view to then floating a public transport spinoff.

Company Web site: www.veolia.com

-By Thomas Varela and Adam Mitchell, Dow Jones Newswires; +33 1 4017 1740; thomas.varela@dowjones.com