Italian Stocks - Factors to watch on July 7

MILAN, July 7 (Reuters) - 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 (*).

TELECOM ITALIA (TLIT.MI)

The telecoms operator will invest 3 billion euros ($4.19
billion) in Brazil through 2011 to boost its broadband services
operation, Brazil's Folha de S. Paulo newspaper reported on
Monday. [ID:nN06271290]

FINMECCANICA (SIFI.MI)

Libya and the aerospace company could announce a joint
venture in some sectors, Il Sole 24 Ore said without citing
sources. The announcement could come with the visit to Italy of
Libya's planning minister and head of the Libyan Investment
Authority followed by Libyan leader Muammar Gaddafi's attendance
at the Group of Eight summit. The investment authority's
purchase of Finmeccanica shares is a financial move and has no
political implications, a Libyan source told the Apcom news
agency, cited by Il Sole 24 Ore.

* ITALIAN EQUITIES

Cheuvreux cut its rating on Italian equities to "neutral"
from "overweight". [ID:nWNAB4732]

PARMALAT (PLT.MI)

Banca Etruria (PEL.MI) has agreed to pay 4.2 million euros
to the food group, settling all claims between them, the
companies said in a joint statement.

* INTESA SANPAOLO (ISP.MI)

If the bank had to pay a fine for the pact between its
shareholders Generali (GASI.MI) and Credit Agricole (CAGR.PA),
which the antitrust is probing, it would seek not to make its
shareholders pay, Corriere della Sera said, citing Management
Board Chairman Enrico Salza.

TERNA (TRN.MI)

Power demand in Italy fell 6.6 percent in June to 26.3
billion kilowatt hours despite an extra working day and a
slightly higher average temperature, power grid operator Terna
(TRN.MI) said. [ID:nL7591155]

CITIBANK (C.N)

The U.S. bank is in talks with Spain's Banco Santander
(SAN.MC) to sell its private banking unit in Italy, Il Sole 24
Ore said, quoting the head of Citibank's Europe and Africa
division.

SMALL AND MID CAPS

* ACEA (ACE.MI)

The utility's board meeting on Tuesday will discuss the plan
drawn up by Mediobanca to reach an agreement with partner and
shareholder GDF Suez (GSZ.PA), Finanza & Mercati said, citing
sources close to the Acea board.

L'ESPRESSO (ESPI.MI)

The publisher of daily La Repubblica, Italy's second-biggest
selling newspaper, said in a statement it expected savings of
about 140 million euros from a plan to cut costs. Relevant
savings will be achieved this year and will be achieved almost
in full in 2010", it said. [ID:nBIA0641f]

PERMASTEELISA (PMS.MI)

Amber Capital, which owns more than 15 percent of the
company, has asked for a board reshuffle that will be discussed
at a shareholders meeting in September, the maker of special
walls said in a statement on Monday.

The Amber move could lead to the entire board being forced
out, Il Sole 24 Ore said without citing sources.

* MONTEFIBRE (MFBI.MI)

The chemical company will shut down and sell its Marghera
site, abandoning Italian production, MF reported without citing
sources.

MARIELLA BURANI MBFG.MIK

The fashion house has signed a five-year exclusive licence
agreement to produce and distribute Giambattista Valli Paris
pret-a-porter collection worldwide, the company said in a
statement on Monday.

PININFARINA (PNNI.MI)

The car designer's board meets to set terms of an up to 70
million euro rights issue.

* AMPLIFON (AMPF.MI)

Citigroup raised its rating on the hearing aid maker to
"buy" from "sell".

PRADA

The fashion group will renegotiate with UniCredit and Intesa
Sanpaolo debt of 450 million euros which matures in July 2010
and which should be extended to 2012 when the group will be
ready to list, La Repubblica said, without citing sources.

($1=.7154 Euro)