Italy - Factors to watch on January 6

Mon Jan 6, 2014 2:53am EST

Related Topics

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 (*).

POLITICS

Italian deputy economy minister Stefano Fassina resigned on Saturday, after calling for a cabinet reshuffle following the election of Matteo Renzi to lead his Democratic Party (PD), the biggest in the coalition, a government spokesman said.

ECONOMY

Markit, December service Pmi data (0843 GMT).

COMPANIES

Milan, Bourse after hours trading closed.

UNIPOLSAI

Shares debut after Unipol's merger with Fondiaria-SAI , Premafin Finanziaria, Milano Assicurazioni .

MONTE DEI PASCHI DI SIENA

A meeting of the bank's board could be moved forward to either Jan. 9, Jan. 13 or Jan. 14 from a current date of Jan. 16, various papers reported on Saturday.

CEO Fabrizio Viola met with officials from the Bank of Italy, papers said on Saturday, adding that the meeting was more of a "technical than political nature". No other details were given. Viola also conducted a phone conversation with Economy Minister Fabrizio Saccomanni, the reports added, without giving any details. Between CEO Viola and Chairman Alessandro Profumo, who are expected to decide in January whether to step down, the chief executive was more inclined to leave, while Profumo wanted to await developments on the shareholding front, Il Sole 24 Ore said on Saturday, citing sources close to the two officials.

Banking foundations Cariplo and Cariverona, Cassa di Risparmio di Firenze and U.S. funds may be in talks to invest up to 350 million euros to buy 20 percent of the Monte dei Paschi foundation's stake in the bank, Corriere della Sera said on Sunday.

Algebris is also looking at the dossier, but is far from having made a decision on the matter, La Repubblica said on Sunday.

TELECOM ITALIA

Spanish telecoms group Telefonica said on Monday it was not part of a vehicle studying a potential joint offer for Brazilian wireless operator TIM Brasil, a unit of Telecom Italia , and had no details of such a deal.

Corriere della Sera cited sources close to Telefonica as saying on Sunday that the Spanish group was not involved in any operations regarding Telecom Italia's presence in Brasil, nor did it intend to do so.

Marco Fossati, who owns a 5 percent stake of Telecom Italia, said any hypothesis for the sale of TIM Brasil needed to be thoroughly examined by the board of directors, with the full involvement of minority shareholders, various papers said on Sunday. He said TIM Brasil was not only a strategic asset but also very significant for the activity of the group.

At a meeting on Jan. 16 the company's board will discuss changes to the phone group's governance rules to be proposed by CEO Marco Patuano, Corriere della Sera said on Saturday.

According to La Stampa, at the same meeting the company's independent advisors will present the board with a motion which, if approved, will impose its members to consider any offers for its Brazilian unit, wherever they may come from.

FIAT

Fiat has given Rome guarantees that the automaker will invest in plants in Italy and keep a strong presence in the country, Il Sole 24 Ore on Sunday quoted Industry Minister Flavio Zanonato as saying.

The paper also said Fiat was considering the issue of a mandatory convertible bond of 1-2 billion euros to boost its capital base after the merger with Chrysler. The company declined to comment.

Chief Executive Sergio Marchionne's merger of carmakers Fiat and Chrysler will probably entail a U.S. share listing that cements North America as the group's new centre of gravity and further sidelines Italy.

The carmaker is already on the lookout for a new partner for its future merged entity with Chrysler, Il Messaggero said on Saturday. The paper mentioned Mazda and Suzuki as potential targets and said CEO Sergio Marchionne was also in talks with Chinese companies, but did not give any details.

Moody's affirmed Chrysler's rating on Fiat's acquisition announcement, the ratings agency said on Friday.

Lupo Rattazzi, a board member at the Agnelli family's holding company EXOR, told Il Giornale on Monday that the idea that Marchionne may leave next spring after presenting Fiat's new business plan was "terrifying."

ALITALIA

Alitalia has asked banks to extend an existing loan agreement by 50 million euros ($68 million), daily Il Messaggero reported on Saturday, in a sign the troubled Italian airline may again be facing a liquidity crunch just weeks after a capital increase.

Etihad Airways is expected to present to the Italian government early this week conditions to which it would tie its potential investment in Alitalia, Il Messaggero said on Saturday. Among those were an agreement with unions on a revised industrial plan, an investment commitment from airport operator ADR and negotiations with banks, the paper added.

The airline has called a meeting for Jan. 13 to nominate a new board that will replace the existing one which will be resolved following a capital increase, various reports said on Saturday. Lists with possible candidates need to be deposited by Jan. 8, the papers added, with Domenico Cempella mentioned as a possible new candidate for chairman.

BANCA POPOLARE DI MILANO

Giuseppe Castagna, a former director-general of Intesa Sanpaolo, Italy's biggest commercial bank, is seen as the frontrunner to become chief executive of BPM, Il Sole 24 Ore said on Saturday.

BANCA CARIGE

Bank of Italy and market regulator Consob have told the lender that it must not issue new bonds until its situation clarifies, daily La Stampa said on Saturday, citing financial sources.

MEDIOBANCA

The Italian investment bank is planning to reduce the size of its board to 13 members from the current 22, Il Sole 24 Ore said on Saturday. The proposal will be discussed at a board meeting on Feb. 18. According to the paper, the bank is also looking at moves to keep its shareholder pact in place even if it covered less than 30 percent of the group's capital. According to existing rules, the pact, which now covers 30.05 percent of the bank's capital, would be automatically dissolved should members with 1 percent of the group drop out.

CASSA DEPOSITI E PRESTITI

The state lender has contacted Sama Foreign Holdings, a fund in the United Arab Emirates, seeking a possible partnership, the MF said on Saturday.

SNAM

Tigf, the French gas transport and storage business owned by a consortium that includes Snam, revised upwards investments forecast for 2013 to 152.1 million euros from 130 million and for 2014 to 123 million euros from 119 million, Il Sole 24 Ore said on Saturday. The company also received a green light for its 10-year development plan, the paper added.

SALINI IMPREGILO

Spain stepped in on Friday to try to resolve a cost dispute over the expansion of Panama's canal, which has triggered a sell-off in the shares of Sacyr SA, the Spanish builder leading the project.

Flawed geological studies of the terrain of the Panama Canal by its operator has led to big cost overruns in the project to expand the waterway, the building consortium at the center of a dispute with Panama's government over the plan said on Saturday.

ENI

The Italian oil major will start a planned share buyback programme worth up to 6 billion euros ($8 billion) on Monday, the company said on Friday.

BARILLA

The Italian pasta maker plans to double its 3.2 billion euro annual turnover by 2020, the Financial Times said on Saturday. The company plans to open a pasta production plant in Russia, the paper added.

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......

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:...............................

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.