BUZZ-Telecom Italia lifted by Italy mobile M&A talk
** Shares in Telecom Italia (Other OTC: TIAJF - news) rise more than 2 percent, topping gainers in a weak Milan market.
** Traders and analysts cite speculation over possible consolidation in the Italian mobile market.
** Reuters reported on Tuesday that Hutchison Whampoa (Berlin: HUWA.BE - news) had resumed talks with Russian telecoms group Vimpelcom (NasdaqGS: VIP - news) over merging their Italian mobile firms.
** An analyst says the possible tie-up would be positive for all four mobile operators in Italy, which have been hit by a fierce price war to win over customers.
** On May 28 Goldman Sachs (NYSE: GS-PB - news) raised its target on Telecom Italia to 1.50 euros, saying it saw the group as a key beneficiary of an expected consolidation in the telecoms industry. (RM (LSE: RM.L - news) :stefano.rebaudo.thomsonreuters.com@reuters.net)