(Corrects fifth paragraph to make clear the executive said there was no urgent need for consolidation in Belgium. The word "no" was accidentally dropped from previous story)
* Mobistar shares up 4.3 pct, Telenet up 3.3 pct
* Fr Telecom CFO tells Reuters saw possible consolidation
* Some traders speculate on Fr Telecom buyout of Mobistar
* Fr Telecom says it looking to increase Mobistar stake
By Philip Blenkinsop and Leila Abboud
BRUSSELS/PARIS, Sept 25 (Reuters) - Shares in Belgian
telecom operators Mobistar
Some traders also said the Mobistar gains were on rumours that France Telecom was seeking to buy the Belgian company out rather than promote a tie-up between .
A France Telecom spokesman poured cold water on this rumour.
"We are very satisfied with the level of our stake and have no intention of modifying our holding," he said.
France Telecom Chief Financial Officer Gervais Pellissier told Reuters in an interview on Thursday that Switzerland, Belgium and Portugal were countries where partnerships or deals could happen, although he said there was no urgent need in Belgium. [ID:nN24457353]
Shares in Belgium's number two mobile operator Mobistar, which is 52.9 percent-owned by Francen Telecom, were up 3.8 percent at 47.93 euros at 1500 GMT, against a 0.3 percent rise in the DJ Stoxx Telecoms Index <.SXKP>.
Shares in Belgium's Telenet, a cable operator pushing into mobile telephony, were up 2.6 percent at 17.81 euros.
"After the (France Telecom) CFO's comment, the link is being made between Mobistar and Telenet or with Base," said Bank Degroof analyst Siddy Jobe.
Base, part of Dutch KPN Telecom
Speculation has mounted before about a possible Mobistar-Telenet tie-up. Telenet has already agreed an MVNO (mobile virtual network operator) deal with Mobistar to offer mobile services via the latter's network.
The Belgian government has plans to sell a fourth mobile licence this year.
Mobistar declined to comment. Telenet was not immediately reachable for comment.
In a sign of how Europe's telecom market is evolving,
France Telecom and Deutsche Telekom
Such joint ventures or network sharing are increasingly being done to lower telecom operators' costs and share the massive investments in infrastructure needed to keep up with changing technology. (Editing by David Cowell)