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Telecom Italia (TI +8.4%), Orange (ORAN +2.8%), and Portugal Telecom (PT +3.9%) jump following...

Telecom Italia (TI +8.4%), Orange (ORAN +2.8%), and Portugal Telecom (PT +3.9%) jump following news Telefonica Deutschland and KPN's E-Plus German unit are merging. With voice/text revenues plunging across the continent thanks to macro weakness and the popularity of VoIP/Web messaging services such as WhatsApp and Skype, investors are hoping consolidation will strengthen debt-laden telcos by delivering cost savings and relieving price pressure. But the EU appears more interested in seeing M&A happen between carriers serving different markets than the same ones, and will likely give the Telefonica/KPN deal close scrutiny.
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