Britain's Colt Telecom shares rise on takeover hopes

LONDON, June 9 (Reuters) - Shares in Britain's Colt Telecom (LSE: CTM.L - news) rose more than three percent on Wednesday on persistent speculation that France Telecom (Paris: FR0000133308 - news) or Cable & Wireless (LSE: CW.L - news - msgs) might be mulling a takeover.

Dealers said talk that France Telecom might be looking at Colt Telecom, or another UK alternative carrier, has been circulating in the market for some time.

Recent talk that Britain's Cable & Wireless or France Telecom are looking at acquisitions has boosted shares in a range of alternative carriers including Colt, Kingston Communications and Easynet .

"We don't comment on market speculation," said a spokeswoman for Colt Telecom. A France Telecom spokesman declined to comment. Cable & Wireless also declined to comment.

One analyst doubted that either Cable & Wireless or France Telecom would be in a position to make a major purchase.

"It's very hard to believe that Cable & Wireless would go for a deal that would be dilutive," said the analyst, who declined to be named.

By 1051 GMT Colt Telecom's shares were among the mid-caps biggest gainers, up 3.5 percent at 88-1/2 pence, valuing the company at around 1.3 billion pounds ($2.4 billion). C&W's shares were up one percent at 131-1/4p.

In Paris France Telecom's shares were down 0.2 percent at 20.29 euros.

The analyst added that Colt Telecom did not fit with France Telecom's core business. (Additional reporting by Friedel Rother, Steve Slater and Chris Noble in Paris)

Pity no one is following COLT TELECOM - IF IT INCREASES ANY FURTHER THIS WEEK OR NEXT THEN IM )))...ROSE TDAY TO 88.5P...

Hmmm not the take over talk again. Is it Cable and Wireless again or Fidelity...Colt will rise after it has completed it's 5 wave cycle.