MILAN: Shares in Telecom Italia rose more than 3 percent in early trade on Tuesday after Mexico's America Movil said it would hold talks with Brazil's Oi SA over joining its bid to buy the Italian phone group's Brazil unit.

Oi unveiled plans in August to take over Tim Participacoes SA, which is majority-owned by Telecom Italia, saying it wanted to bring in America Movil and Spain's Telefonica to split the deal three ways.

By 0710 GMT, Telecom Italia shares were up 3.3 percent at 0.916 euros, compared with a 0.3 percent rise in Milan's blue-chip index.