Italian Stocks - Factors to watch on May 20

MILAN, May 20 (Reuters) - The following factors could affect
Italian markets on Wednesday.

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

FIAT (FIA.MI)

The car maker is slated to present its plan to link up with
General Motors GM.N unit Opel.

* Italy Industry Minister Claudio Scajola said he sees "good
possibilities" that Fiat would close the deal with Opel.

Chief Executive Sergio Marchionne said Fiat will offer "so
many assets" for Opel, according to Il Sole 24 Ore, adding to
Tuesday comments by the CEO on not paying cash for Opel.

Marchionne believes Opel needs 7 billion euros of financial
help guaranteed by interested governments, La Repubblica
reported.

Three formal bids for a stake in GM's European operations
are expected by the Wednesday deadline and bidders will be asked
to come up with about 650 million euros, the Financial Times
said on Wednesday.

The three bidders are Fiat, Canada's Magna and
Brussels-listed car parts company RHJ International, it said.

Fiat is sounding out UniCredit (CRDI.MI) and Intesa Sanpaolo
(ISP.MI) on funding its Opel plans, Il Messaggero said.

Chrysler LLC is seeking court approval for a settlement with
Daimler AG (DAIGn.DE) and private equity firm Cerberus [CBS.UL]
that calls for them to forgive billions in loans to the bankrupt
carmaker and contribute to its pension plans, in exchange for
Chrysler dropping all claims against them. [ID:nN19443223]

Some auto dealers that Chrysler LLC plans to close are
beginning a challenge to the automaker's plans to quickly sell
itself in bankruptcy. [ID:nN19463740]

Fiat's expansion plans have stirred resentment among its
workers in the south of Italy over the idling of plants.
[ID:nLI932112]

If General Motors Corp files for bankruptcy, as widely
expected, its healthy assets will be quickly sold to a new
company owned by the U.S. government, a source familiar with the
situation said on Tuesday. [ID:nN19441558]

* Goldman Sachs upgraded Fiat shares to "buy", from
"neutral", raising its target price to 10 euros, from 7 euros.

PARMALAT (PLT.MI)

The dairy company has agreed to buy some of Australia's
National Foods' fresh milk operations for about A$ 70 million in
cash, Parmalat said on Wednesday. [ID:nLK696719]

FINMECCANICA (SIFI.MI)

The U.S. Navy expects about $555 million in cancellation
costs for Lockheed Martin Corp's (LMT.N) VH-71 presidential
helicopter, according to a document obtained by Reuters.
[ID:nN19443312]. Finmeccanica is part of the consortium
developing the VH-71.

SNAM RETE GAS (SRG.MI), ENI (ENI.MI)

Snam said the rights issue launched to help acquire gas
assets from parent comapny Eni was virtually fully subscribed.
[ID:nLJ289788]

* Broker Bernstein raised Eni's price target to 22 euros,
from 20 euros, rating outperform.

TELECOM ITALIA (TLIT.MI)

An Italian government adviser has offered three options to
spur Italy's broadband ambitions, one of which could involve a
spinoff of Telecom Italia's fixed-line network, according to a
report. [ID:nLJ962181]

CIR (CIRX.MI)

Standard & Poor's Ratings Services has lowered its long-term
corporate credit rating on CIR to 'BB' from 'BB+'. The 'B'
short-term rating was affirmed. [ID:nWNA4613]

SMALL, MID-CAPS

ERG (ERG.MI)

Local authorities said on Tuesday they needed more time to
consider permission for Italian refiner ERG's joint project with
Royal Dutch Shell (RDSa.L) to build a liquefied natural gas
(LNG) import terminal in Italy. [ID:nLJ650284]

RCS MEDIAGROUP (RCSM.MI)

The editor of Italy's Corriere della Sera newspaper, owned
by RCS, has written a letter to the paper's editorial committee,
which represents journalists, calling RCS's plans for
restructuring "unacceptable", the committee said in a note on
Tuesday.

The newspaper's journalists are planning six days of strikes
in the face of 90 job losses, part of a 200 million euros of
spending cuts announced by RCS, Libero said on Wednesday.