Italy - Factors to watch on January 29

Tue Jan 29, 2013 2:54am EST

The following factors could affect Italian markets on Tuesday.

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

DEBT AUCTIONS

The treasury sells 8.5 billion euros of 6-month BOT bills. Subscriptions close at 1000 GMT

BANCA MONTE PASCHI DI SIENA

The troubled bank said on Monday it had no evidence of bribery in a 2007 takeover now under scrutiny over alleged corruption but acknowledged accounting irregularities over derivatives deals under previous management.

The loss-making trades at the centre of a scandal at Monte Paschi were only uncovered when new executives unlocked a safe at the bank's historic headquarters in Tuscany.

Just as he prepares to take responsibility for regulating the banking system of the entire euro zone, Mario Draghi faces questions dating back to his leadership of the Bank of Italy over its oversight of the world's oldest bank.

The shareholder foundation which controls Monte Paschi is considering selling part of its nearly 35 percent stake in the troubled bank, according to a strategy document covering the 2013-15 period seen by Reuters on Monday.

* Il Sole 24 Ore said the foundation is ready to sell 10 percent of the bank to finish repay debt owed to a pool of banks led by JP Morgan.

CEO Fabrizio Viola said on Monday that the so-called "document on BMps derivatives" at the centre of the scandal over opaque trades was not present in the bank's official documents before being found.

Economy Minister Vittorio Grilli speaks before the Finance Committee of the lower house of parliament on Banca Monte dei Paschi di Siena at 1400 GMT On Tuesday.

ECB governor Mario Draghi met Grilli on Monday in Milan and they have likely discussed also the Monte Paschi crisis ahead of Grilli's hearing in Parliament on Tuesday, a source with knowledge of the meeting said, confirming reports in the FT and other newspapers.

* INTESA SANPAOLO

CEO Tommaso Cucchiani told Corriere della Sera the Monte Paschi scandal was an isolated case and that he saw not risk of contagion for the Italian banking system. In an interview, he said there would be "systemic risk" if state help was blocked.

Berenberg cuts Intesa Sanpaolo to hold from buy

* UNICREDIT

Berenberg cuts UniCredit to hold from buy

* ATLANTIA, GEMINA

Atlantia's planned takeover of Gemina will be carried out through an offer in shares with no cash component in order to keep its credit ratings, Il Sole 24 Ore reported. Boards of the two companies are due to meet on March 8 to approve the operation.

* SNAM

MF reported that the gas company is consider buying with its partner Fluxys a stake in the Tap gas pipeline.

SEAT PG

Italian yellow pages company Seat Pagine Gialle said on Monday it had decided to suspend the payment of 42.2 million euros of interest due on Jan 31 on senior secured notes, as its business environment worsens.

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FTSE IT allshare index

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

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