France's Alcatel said its second quarter sales rose 7.3 percent to 5.7 billion euros ($6.1 billion) from 5.4 billion euros a year ago. Revenue for the first half of the year increased 6 percent to 10.1 billion euros. The telecom equipment provider said it will increase its stake in electronics company Thomson-CSF from 16 percent to 25 percent. CEO Serge Tchuruk said its Internet business, especially in high-speed transmission technology, was strong in the second quarter. Separately, Morgan Stanley Dean Witter raised its rating on Alcatel stock from a "neutral" to a "strong buy."