Zegona gains on Spanish media talk of Telefonica approach
** Zegona Communications ZEG.L gains more than 4% following Spanish media speculation about Telefonica TEF.MC seeking to buy the UK telecom group's Vodafone Spain business
** Vozpopuli, citing unnamed sources, reports that Telefonica has approached Zegona once again in recent weeks regarding a potential acquisition of the unit
** Telefonica declines to comment on the report
** By 0907 GMT, Zegona up 4.5% to its highest in around 3 months. Telefonica up 0.7%