Italy - Factors to watch on Dec. 17

Mon Dec 17, 2012 2:42am EST

The following factors could affect Italian markets on Monday.

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

* PRIME MINISTER MONTI'S POLITICAL PLANS TAKE SHAPE

Italian papers reported in unsourced articles on Monday that Prime Minister Mario Monti told President Giorgio Napolitano he is standing as the head of a centrist coalition in upcoming elections.

Italy's Prime Minister has already said he will resign once Italy passes the next budget law but has yet to say whether he will run for prime minister in next year's elections - which many European leaders want him to do.

ITALY DOES NOT NEED ECB AID

Italy can deal with current financial market tension without asking for the activation of the European Central Bank's bond-buying scheme, Bank of Italy Governor Ignazio Visco told daily La Stampa on Sunday.

ITALY'S TOBIN TAX

Italian exporters that use derivatives to protect themselves from exchange rate swings will be exempt from a new levy on financial transactions, daily paper Il Sole 24 Ore reported on Saturday.

ENI

The Italian oil and gas company plans to invest $8 billion in Libya over the next 10 years to develop its upstream business as it moves to strengthen its grip as the leading international oil and gas producer in the country.

GENERALI

Bank of Italy board will discuss on Tuesday options to sell its 4.5 percent stake in Generali as the central bank prepares to become the watchdog for Italian insurance sector.

The investor who will buy the stake from the Bank of Italy will not get involved in the insurer's governance and management, the central bank governor told daily La Stampa on Sunday without revealing details on the potential buyer.

Generali said on Friday it is to invest around 300 million euros ($393 million) in the next three years on streamlining operations and improving profitability in its home turf, part of a revamp under new CEO Mario Greco.

FINMECCANICA

Italy's Fondo Strategico Italiano (FSI) will present a binding offer to buy a minority stake in Finmeccanica's AnsaldoEnergia unit next week, a source close to the deal told Reuters on Saturday.

General Electric Co is near a deal to acquire Italian aero-engine supplier Avio, in which Finmeccanica has a minority stake, Il Sole 24 Ore reported on Sunday.

PARMALAT

The Canadian unit of the Italian diary company will have pay to the Ontario Teachers' Pension Plan Board an additional 72.5 million Canadian dollars ($734.88 million) by Jan. 2, the group said on Saturday.

Taking into account the provision already made, the food company said the impact on the consolidated financial statement will be around 70.4 mln Canadian dollars, equal to 54.8 million euros.

FIAT

Italian carmaker Fiat SpA rebutted a report that it was set to raise money from banks to finance its purchase of more of Chrysler, saying on Friday it had no need for such funds.

FITCH AFFIRMS SOVEREIGN RATING

Fitch affirmed its A- rating on Italy with a negative outlook on Friday after the agency's last review in July 2012.

The agency said its rating was based on the assumption that Italy's political stability would not be threatened by the upcoming election.

BANKS

Fitch Ratings' outlook for the major Italian banks for 2013 remains negative according to a report published on Friday. The outlook reflects the difficult operating environment for the Italian banks in the midst of the eurozone crisis. The weak domestic real economy has caused a sharp rise in impaired loans, and Fitch expects asset quality to deteriorate further in 2013.

PIRELLI, CAMFIN

Two Italian private equity funds extended the deadline for talks over a possible financial and business partnership with a holding company that indirectly controls tyremaker Pirelli, the companies said in a joint statement on Friday.

FONDIARIA-SAI, UNIPOL

S&P raised its credit rating on Fondiaria-SAI and its subsidiary Milano Assicurazioni Spa to "BBB" from "BB" with outlook negative on Friday in light of their planned merger with insurer Unipol.

RECORDATI

Danish pharmaceutical group Lundbeck said on Friday it agreed to divest a number of noncore products to Italy's Recordati Industria Chimica e Farmaceutica SpA.

CATTOLICA ASSICURAZIONI

Shareholders' meeting decided to change governance rules in order to renew the entire board every three year, the Italian insurer said on Saturday.

IPO

Infrasctructure fund F2i will decide next week whether to present an offer to buy the 14.56 percent stake of airport operator SEA the province of Milan will sell through an auction, Il Sole 24 Ore reported on Saturday.

*LOTTOMATICA

The Italian lottery operator said on Monday its GTECH unit signed a four-year contract extension with Camelot UK Lotteries, and expects to receive more than 200 million euros in revenue over the period.

For Italian market data and news, click on codes in brackets:

20 biggest gainers (in percentage)............

20 biggest losers (in percentage).............

FTSE IT allshare index

FTSE Mib index........

FTSE Allstars index...

FTSE Mid Cap index....

Block trades..........

Stories on Italy...... IT-LEN

For pan-European market data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Reuters survey of world bourse outlook......... Western European IPO diary.......................... European Asset Allocation........................ Reuters News at a Glance: Equities............... Main currency report:...............................

($1 = 0.9866 Canadian dollars)

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