Italian Stocks - Factors to watch on April 10

MILAN, April 10 (Reuters) - The following factors could
affect Italian markets on Thursday.

Reuters has not verified the newspaper reports, and cannot
vouch for their accuracy. New items are marked with (*).

ALITALIA AZPIa.MI, AIR FRANCE-KLM (AIRF.PA)

Italy's government meets with Alitalia unions in a
last-ditch attempt to overcome opposition to a takeover offer by
Air France-KLM, after talks between labour leaders and the
Franco-Dutch carrier broke down last week.

Shares in Alitalia were priced down 21 percent at close on
Wednesday, as Italy's Bourse fixed a single price for the stock
weighing up trading orders received throughout the session.

For a story, click on [nMAT008063].

FIAT (FIA.MI)

Fiat is working on a car smaller than the new Cinquencento
(500) as well as a low-cost car to succeed the Palio for
emerging markets by 2010, Il Sole 24 Ore and MF report, quoting
senior executive Harald Wester.

Fiat has signed an agreement with unions that will see the
car maker invest 550 million euros in its Termini Imerese
factory in Sicily, the newspapers reported.

Fiat also agreed to the sale of a plant it used to use with
former joint venture partner Nanjing in China for 135 million
euros to Volkswagen, they said.

* INTESA SANPAOLO (ISP.MI)

The bank's chief executive, Corrado Passera, said the bank
was interested in bank privatisations in Libya and Algeria as
well as Islamic financing as part of its growth plans, several
newspapers reported.

The bank announced agreements in Egypt on Wednesday that
will support infrastructure development and Egyptian companies
that use Italian technology.

PARMALAT (PLT.MI)

The dairy group is looking at deals in Australia, Chief
Executive Enrico Bondi said on Wednesday, without specifying any
targets in the country where Dairy Farmers is up for sale.

For a story, click on [nL09348936].

Parmalat will hold an extraordinary shareholder meeting to
discuss a request by some investors that it boost its dividend
payout.

For a story, click on [nL09181011].

FINMECCANICA (SIFI.MI)

The defence and aerospace group confirmed its earnings
forecasts for 2008-10 despite an expected negative impact on
revenues at its Alenia Aeronautica unit from Boeing's delay on
its 787 Dreamliner.

For a story, click on [nRAT003711].

Russian steel company Severstal (CHMF.MM) is in talks with
Finmeccanica on a joint venture that would build power plants in
Russia, MF reported. It cited a Bloomberg interview with
Finmeccanica Chairman and Chief Executive Pier Francesco
Guarguaglini.

Severstal also is interested in taking a 30 to 40 percent
stake in Finmeccanica unit Ansaldo Energia, a maker of power
plant equipment, MF said.

GENERALI (GASI.MI), MEDIOBANCA (MDBI.MI), BENETTON BNG.MI

Activist fund Algebris has stepped up its complaint about
the independence of auditors at Assicurazioni Generali, asking
the Bank of Italy and insurance watchdog Isvap to step in.

For a story, click on [nL09421698].

ENI (ENI.MI), ERG (ERG.MI)

Italy's energy regulator AEEG has been investigating power
generation units of the two companies for their failure to
comply with some green energy regulations.

For a story, click on [nL09908888].

SORIN (SORN.MI)

Medical devices maker Sorin will decide in the second half
of the year on whether to sell its renal care unit, Chief
Executive Andre-Michel Ballester told Finanza & Mercati in an
interview.

A decision on the sale of the vascular therapy division
would come at the end of the year or the start of 2009, he said.

He declined to comment on speculation the renal care unit
could be sold to Germany's Fresenius FREG_p.DE.

ITALMOBILIARE (ITMI.MI)

The holding company said on Wednesday a shareholder meeting
called for April 29 and 30 would discuss an optional conversion
of savings shares into ordinary shares, as requested by British
fund manager Hermes.

The conversion rate would be of one new ordinary share for
each savings share, without adjustment payments.