Miner Eramet rises as France backs capital increase

** Shares in Eramet ERMT.PA rise around 3% on France's plans to increase its stake in the miner and become its top shareholder

** The French state would raise its stake from 27% to up to 49% during the €500 million ($559 million) capital hike Eramet announced in February

** ODDO BHF analyst Maxime Kogge says that while the terms of the arrangement seem complex, they are nonetheless increasing the chances of success of the capital increase

** "The appetite of the (institutional investors) is likely to remain limited, given the group's recent track record, its persistently high risk profile and the still limited visibility regarding the recovery of its financial trajectory," Kogge says in a note

** Up to Monday's close, the Eramet stock was down 24.5%​ YTD

($1 = 0.8944 euros)