CORRECTED - Angola's Sonangol raises stake in Portugal's BCP

(Corrects name of bank in headline)

LISBON, April 21 (Reuters) - Angolan state oil company Sonangol has raised its stake in Portugal's Millennium bcp (BCP.LS: Quote, Profile, Research) to around 7 percent from 5.16 percent, making it one of the bank's main shareholders, a financial source said on Monday.

At the end of last year, Millennium and Sonangol struck an agreement whereby Sonangol and a private Angolan bank would take a 49.99 percent stake in Millennium's banking operation in the African country -- Banco Millennium Angola.

The financial source, who asked not to be named, said Sonangol had raised its stake in Millennium through the bank's 1.3-billion-euro rights issue, which is taking place now.

"The position in Millennium is strategic and long-term," the source told Reuters.

Nobody at Sonangol would comment on the news and a spokesman at Millennium said the: "Bank does not comment on shareholder issues."

Shares in Millennium closed 3.01 percent higher at 1.8850 euros. (Reporting by Axel Bugge; Editing by Paul Bolding)