** Shares in Telecom Italia TLIT.MI rise as much as 5% as a $19.7 billion offer for Altice's activities in France sparks hopes for consolidation in Italy
** "The news is positive... as it initiates a consolidation process among telecom operators in a European market that could serve as a benchmark for the Italian market," Equita says
** The offer shows a "potential need for Iliad to monetize its Italian asset to help finance the deal and potential catalyst for Iliad to increase efforts to consolidate also the Italian market," Banca Akros notes
** Should Iliad Italy merge with TIM, Banca Akros estimates cost savings with a net present value of around 5 billion euros to be split between the groups
** Stock is up around 3% at 0823 GMT; including today's rise it has gained 99% YTD
($1 = 0.8593 euros)
(Reporting by Philippe Leroy Beaulieu)
((Philippe.leroybeaulieu@thomsonreuters.com))