UPDATE 1-J.C. Flowers to control Italy's Euromobiliare

(Adds details, share price)

MILAN, June 25 (Reuters) - U.S. private equity fund J.C. Flowers will buy a controlling stake in Italian bank Credem's Euromobiliare brokerage after a management buyout, Credem said on Monday.

Credem (EMBI.MI) has agreed to sell Euromobiliare to a management buyout called E2Holding for 120.9 million euros ($162.7 million), it said in a statement.

J.C. Flowers will then take a controlling stake in the management buyout, Credem said. Italy's Mid Industry Capital MIC.MI will take a minority stake.

Credem will book a capital gain of more than 15 million euros once the deal is completed, it said. The Bank of Italy must approve the sale.

Mid Industry Capital said in a statement that J.C. Flowers would take 50.01 percent of E2Holding and it would have a 9.99 percent stake.

As part of the deal, Credem will keep ownership of the Euromobiliare brand name but will make it available to E2Holding for a "suitable period", the statement said.

Shares in Credem were down 1.82 percent at 10.58 euros at 1327 GMT as the DJ Stoxx European banking index .SX7P was off 0.75 percent.