Finnish DNA wants to increase Elisa stake -report

HELSINKI, Sept 6 (Reuters) - Finland's third-largest telecoms operator, DNA [DNA.UL], is interested in increasing its stake in rival Elisa (ELI1V.HE: Quote, Profile, Research, Stock Buzz), daily Helsingin Sanomat reported on Saturday, citing information obtained by the paper.

Jan-Erik Frostdahl, DNA's chief executive, declined to comment on the report.

DNA holds 5.3 percent of Elisa, Finland's second-largest operator, making it the number two shareholder behind Iceland's Novator, which holds just over 10 percent.

Helsingin Sanomat said DNA was interested in buying Novator's shares, but Novator told the paper there had been no talks between the two.

DNA Chairman Risto Siivola told Reuters earlier this week his firm was not interested in seeking a seat on the board of Elisa as its holding is a financial, not strategic, investment.

Elisa has been the target of shareholder activists seeking to boost the firm's performance in the competitive Finnish market. Novator got two board seats at Elisa's annual general meeting in March after a lengthy public battle. (Reporting by Tarmo Virki; Editing by Clarence Fernandez)