* London-based Amber holds 1.9% of Suez's share capital
* Amber Capital has also targeted Lagardere
* Many European companies targeted by activist funds(Adds detail and response from Suez)
By Sudip Kar-Gupta and Geert De Clercq
PARIS, July 18 (Reuters) - Shareholder activist firm AmberCapital on Thursday called for a strategy review at Suez, arguing that the French utility had underperformedrivals and could create more value for its shareholders.
Amber Capital said it had sent a letter on July 18 to Suez'smanagement, outlining its demands, as activist funds such asElliott and others target companies across Europe.
London-based Amber Capital, which holds 1.9% of the Frenchutility's share capital, called for Suez to reduce the size ofits board of directors to between 12 and 14 from 19 at present,and to review its portfolio of assets.
"Suez needs a strategic reset: The new management team ofSuez now has a compelling opportunity in our view to repositionthe company," Amber Capital said in a statement.
"After years of limited portfolio management, Amber Capitalbelieves the company needs a thorough portfolio review to rotateout of mature assets and use proceeds to reinvest, delever andbuy back shares," added Amber Capital.
In response, Suez - in which French utility Engiehas a 32% stake - said a strategy review was already underwayand would be presented in the autumn.
Amber Capital has also called on French media companyLagardere to do more to boost shareholder value, whileElliott has targeted companies such as drinks group Pernodand tourism and insurance company Saga.(Reporting by Sudip Kar-Gupta, Editing by Sherry Jacob-Phillipsand Jane Merriman)