TIA TELECOM ITALIA SPA CL A

Nick Kostov and Manuela Mesco

Telecom Italia SpA (TIT.MI) shares rose strongly in early trading Wednesday following comments from French and Italian leaders that they would be keen to create "European champions" through cooperation between the two countries.

Shares gained nearly 4% after excessive premarket gains. At 0943 GMT shares were up 3% at 1.03 euros ($1.13).

French President François Hollande said he discussed possible industrial synergies between France and Italy with Italian Prime Minister Matteo Renzi at a summit in Venice on Tuesday.

"The idea is to have European champions in some sectors," like renewable energies, defence and telecommunications, Mr. Hollande said. But "the majority or minority shareholder will be decided by the companies," he added.

French media group Vivendi SA (VIV.FR) has built up a 23.8% stake in Telecom Italia and now has four representatives on the former Italian monopoly's board.

Asked about the possibility of France's former state monopoly Orange SA buying Telecom Italia, Mr. Renzi said it was up to the market to decide.

"Italy is happy to welcome any entrepreneur who wants to invest in Italy," he said.

Write to Nick Kostov at nick.kostov@wsj.com and Manuela Mesco at manuela.mesco@wsj.com

(END) Dow Jones Newswires

March 09, 2016 05:28 ET (10:28 GMT)

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