STOCKS NEWS EUROPE-Tele2 shares rise 7 pct on bid hopes

Shares in Swedish telecom operator Tele2 (Other OTC: TLTZY - news) rise almost 7 percent after a report says Hong Kong-based Hutchison Whampoa (Berlin: HUWA.BE - news) is interested in buying its Swedish business. http://r.reuters.com/vav66v

Telecoms industry website TMT Finance said on Thursday Hutchison is "advancing talks with Tele2" over an acquisition of its Swedish operations, which account for almost 60 percent of group earnings.

Analysts attributed the share move in Tele2, which also reported fourth-quarter earnings on Friday, to the TMT Finance report.

"I can't see any other reason. I can't find anything in the report that would justify the kind of reaction we are seeing now," says Alandsbanken analyst Stefan Olsson, while noting speculation about consolidation in the Swedish telecoms space has been around for years.

"I see no new substantial arguments that would speak for such a deal, but as usual you can never rule anything out."

Tele2 shares are up 6.8 percent at 76.25 crowns at 0937 GMT, erasing earlier losses after forecasting flat 2014 earnings, less than expected by analysts in a Reuters poll.

Tele2 declined to comment on the report, while Hutchison did not immediately respond to a request for comment.

Reuters messaging rm://olof.swahnberg.reuters.com@reuters.net

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