* Trian takes 7.2 pct stake; is Pentair's 3rd-biggest shareholder
* Trian says could seek board representation
* Pentair has said could use cash for acquisitions
* Flowserve, ITT likely consolidation targets-analysts
* Pentair shares rise as much as 6 pct (Adds Pentair statement, analyst comment, updates shares)
By Abinaya Vijayaraghavan
June 30 (Reuters) - Activist shareholder Nelson Peltz reported a stake in Pentair Plc and asked the pump and valve maker to bulk up through deals and retain key officers, rather than agitate for a spinoff or changes in management as he usually does.
Pentair should use its cash to push consolidation in the fragmented industry, drive revenue growth and margin improvement, Peltz said in a regulatory filing on Tuesday.
Peltz's hedge fund Trian Fund Management LP, now Pentair's third-largest shareholder with a 7.24 percent stake, however, said it could seek representation on the company's board. (http://1.usa.gov/1Jo7hjf)
Pentair's shares rose as much as 6 percent to $68.47. They have lost 11 percent of their value in the past 12 months.
Over the past couple of years, Peltz has targeted DuPont and PepsiCo Inc among others, demanding board seats and asking them to separate their fast-growing businesses from the ones where growth had stagnated.
"We don't see any confrontational, fist-pounding ultimatums from Trian," RBC Capital Markets analyst Deane Dray wrote in a note.
"(We are) intrigued with Trian's premise that value-creation at Pentair should be driven more by M&A ... rather than the more typical activist playbook to pressure management to break up or spin a problematic business."
Pentair had itself said last month that it could use part of its $800 million cash flow to make acquisitions.
Peltz has been in talks with Pentair Chief Executive Randall Hogan for more than a month, the Wall Street Journal reported earlier, citing people familiar with the matter. (http://on.wsj.com/1IpcTev)
Pentair and its peers such as Flowserve Corp, ITT Corp and SPX Corp make industrial parts used by a variety of companies such as oil and gas and water management firms and utilities.
Companies such as Flowserve and ITT could be potential consolidation targets, analysts said. Flowserve's shares rose 3 percent, ITT's 3.5 percent and SPX's 6 percent.
Pentair welcomes and is committed to "maintaining an active, engaged dialogue" with all shareholders, including Trian, spokeswoman Marybeth Thorsgaard said in an email.
Trian declined to comment beyond the regulatory filing.
Pentair's profit over the past two quarters has been hurt by a strong dollar and the slide in oil prices. The company cut its full-year earnings forecast in April. (Additional reporting by Sagarika Jaisinghani and Rama Venkat Raman in Bengaluru; Editing by Savio D'Souza and Sayantani Ghosh)