OREANDA-NEWS. Shares in Italian telecommunications group Telecom Italia rose more than 7 percent on Wednesday, triggering a limit up suspension, with traders citing expectations of a consolidation in the domestic mobile phone industry.

The hopes were fueled by a report in the Financial Times which said Hutchison Whampoa and VimpelCom were in advanced talks to merge their Italian mobile operations.

After the suspension Telecom Italia shares resumed trading and by 1345 GMT they were up 6.8 percent at 1.108 euros.

The European telecoms index was up 1.6 percent.