UPDATE: Wind Open To Consolidation In Italian Market - Sawiris

Italian telecoms operator Wind Telecommunicazioni SpA is ready to consider integrating with other smaller operators in the country, including Hutchison Whampoa Ltd.'s (0013.HK) 3 Italia, but it has yet to start talks, a shareholder in Wind parent company VimpelCom Ltd. (VIP) said Monday.

"We are completely open to integration with all the three companies you mentioned," Egyptian tycoon Naguib Sawiris told a news conference in reply to a question about Wind's possible interest in Internet services provider Tiscali SpA (TIS.MI), 3 Italia and Fastweb SpA.

"There are synergies for sure, but there's nothing concrete right now," he added.

Sawiris became a shareholder of VimpelCom after completing the $6 billion sale of telecommunications assets held by Orascom Telecom Holding (ORTE.CI) to the Russian telecommunications operator in April. The assets include a stake of more than 50% in Wind.

Fastweb, a unit of Swisscom AG (SCMN.VX), runs a fiber-optic network.

Sawiris also said Monday that, in his view, the Italian government should postpone the auction for the new fourth-generation mobile frequencies, which is planned to be completed in September.

"Due to the difficult European economic situation, it's not the right time for the auction," he said. He added that the government wouldn't raise the expected proceeds, which are seen at around EUR3 billion.

Sawiris suggested the Italian government should at least consider an installment payment for the auction, which would give the mobile operators enough time to recover their investment.

-By Giada Zampano and Gilles Castonguay, Dow Jones Newswires; [phone]; [e-mail]