Channel Tunnel operator Groupe Eurotunnel SA (GET.FR) Friday said it is bidding to purchase the French subsidiaries of Veolia Cargo, a unit of French waste, water and energy company Veolia Environnement (VE).

Eurotunnel said that Veolia Cargo's French units produced revenues of approximately EUR50 million in 2008.

Eurotunnel also noted a subsidiary of French state-owned railway operator Societe Nationale des Chemins de Fer is bidding for the German, Dutch and Italian subsidiaries of Veolia Cargo.

No financial details were provided.

Eurotunnel also said the bid is its "first external growth project" and it was "made possible by the 2007 financial restructuring."

Eurotunnel also reported Friday a net loss of EUR8 million for the first half ended June 30, compared to a EUR26 million profit a year earlier.

Eurotunnel said the loss was due to a fire in September, which hindered its shuttle service until Feb. 10 and its Eurostar service until Feb. 23.

Revenue for the first half fell to EUR266 million compared with EUR386 million a year earlier.

Company Web site: www.eurotunnel.com

-By Alice Dore, Dow Jones Newswires; +33 1 4017 1740; alice.dore@dowjones.com