French water, waste, transport and energy services group Veolia Environnement SA (VE) Tuesday confirmed its potential interest in the urban transport company Transdev, with a view to floating a public transport spinoff.

"Veolia Environnement is interested in any situation entailing a change in the share ownership of Transdev," the company said in an emailed statement.

"Veolia Environnement's objective would be to create a new global leader in mass passenger transit," the company said, adding that it would remain the "industrial operator" of the new group, alongside the French state-owned investment business Caisse des Depots et Consignationsor CDC.

"The new group arising out of the merger of the two units would seek a stock market listing as soon as conditions permit," Veolia said. The company didn't give precise details of which of its own assets would constitute the "unit" that would merge with Transdev.

A spokesman for the company didn't immediately reply to a request for more information on that subject.

The CDC has a 69.6% interest in Transdev, according to Transdev's annual report. The Regie Autonome des Transports Parisiens, state-owned operator of the Paris metro, has 25.6% and the Italian bank Intesa San Paolo SpA (ISP.MC) has 4.8%.

French newspaper Les Echos reported earlier Tuesday that Veolia and compatriot transport group Keolis both have expressed interest in a potential tie-up with Transdev.

Insurance company AXA SA (AXA) and the Caisse de depot et placement du Quebec hold a joint stake of 52% in Keolis. French state-owned train operator, the SNCF, has 45.5%.

Company Web site: www.veolia.com

-By Adam Mitchell, Dow Jones Newswires, +33 1 40171756; adam.mitchell@dowjones.com