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 (*).
Prime Minister Matteo Renzi cut taxes for 10 million low
earners on Friday to try to boost household spending after a
two-year recession, making good on a promise he made after
taking office two months ago.
Renzi said in an interview with La Repubblica on Sunday that
if his government succeeded in bringing about reforms, it should
soon be able to also cut value added tax, and taxes for
pensioners and Italians whose incomes are too low to require
them to pay personal income tax.
Economy Minister Pier Carlo Padoan said in an interview with
Corriere della Sera on Sunday that he thought the Italy's gross
domestic product would grow by more than 0.8 percent this year
but it was impossible to estimate by exactly how much.
Padoan said the government was very confident planned
spending cuts would allow it to save as much money as expected.
Italy's central bank said on Friday it was essential the
European Central Bank ensures that inflation does not remain too
low for too long in the euro zone.
Treasury announces sale of BOT bills, with relative amounts
to be auctioned on April 28.
Italy will continue to take advantage of the current strong
demand for its debt from investors and may therefore reduce
issuance later in the year, the head of debt management at the
Treasury said on Thursday.
Italy's banking association ABI called for a serious rethink
of the government's decision to increase a tax on banks' stakes
in the country's central bank, several newspapers reported on
FIAT CHRYSLER AUTOMOBILES, GUANGZHOU AUTOMOBILE
Fiat Chrysler has reached an agreement to start producing
Jeep vehicles in China with partner Guangzhou Automobile Group
Co, the companies said on Saturday, as Fiat tries to catch up
with competitors in a fast-growing market.
Maserati is mulling to launch a new version of its
Quattroporte car for the China market, Fiat brand's Chief
Executive Harald Wester was quoted as saying by daily La Stampa.
India's Larsen & Toubro Ltd said on Monday its
unit had called off talks with Future Generali Insurance, a
joint venture between local retail chain operator Future Group
and Italy's Generali, to merge their businesses.
BANCA MONTE DEI PASCHI DI SIENA
The bank's board approved on Friday a proposal to boost the
size of a planned share sale to 5 billion euros to help cover
any gaps a Europe-wide bank check might find in its finances.
Italy's Treasury may allow loss-making Banca Monte dei
Paschi di Siena more time to pay interest on a state bailout, to
ensure the sum is paid in cash rather than in bank shares,
Corriere della Sera reported on Saturday.
The administrative committee of one-time majority
shareholder the Monte Paschi foundation is due to hold a meeting
next week, Il Giornale and La Repubblica reported on Saturday.
La Repubblica said the committee would decide at the meeting
whether to subscribe to Monte Paschi's capital hike.
* The airline holds a board meeting at 1300 GMT on Tuesday.
Prime Minister Matteo Renzi, asked whether the government
was closing a deal to secure investment in the struggling
airline, said the government is working on it, La Stampa
reported on Saturday.
Alitalia has responded to a letter from Abu Dhabi airline
Etihad setting out conditions for a possible investment,
newswire ANSA quoted Infrastructure Minister Maurizio Lupi as
saying on Friday.
Alitalia's response to Etihad proposes 1,000-1,100 layoffs,
La Stampa reported. Etihad may accept 2,700 layoffs at the
airline, Il Messaggero said, adding Alitalia has proposed 1,200.
Alitalia employees could be offered jobs in publicly-owned
companies, La Stampa and Corriere della Sera reported on Sunday.
La Stampa said Etihad's investment in Alitalia could be
lower than previously planned. Alitalia could offer Etihad a
lower price to take a stake, Il Messaggero reported.
UniCredit, one of the airline's creditors, is willing to
negotiate, provided fellow creditor Intesa Sanpaolo, other
shareholders and the government agree take steps towards closing
the deal, Il Messaggero said.
Russian president Vladimir Putin hailed Russia's first
shipment of Arctic offshore oil on Friday, saying the platform
decried by environmentalists will help Moscow expand its global
energy market share.
Rosneft, Russia's top oil producer, has agreed to develop
Russian Arctic hydrocarbon resources with Eni.
Russian and international oil and gas majors are cooperating
as usual despite sanctions imposed over Ukraine, and Russia's
South Stream gas pipeline project is going ahead, Energy
Minister Alexander Novak said on Friday.
The board of the struggling energy company may meet on April
28 or 29 to discuss its debt restructuring, Il Sole 24 Ore
reported on Saturday without citing sources. Holding company CIR
sent a letter to creditor banks to ask to discuss the terms of a
potential 400 million euro capital increase for the company, the
SEAT PAGINE GIALLE
The Italian yellow pages company may cease to operate as
last year's accounts showed "significant uncertainties", its
auditors PricewaterhouseCoopers (PwC) said.
The motorway, technology and construction group said on
Friday it would pay a gross final dividend of 0.24 euros per
share from May 2 2014.
MOVIEMAX MEDIA GROUP
The company said on Friday it had finalised a framework
agreement with Computio Finance whereby Computio will underwrite
a reserved capital increase for up to 600,000 euros, to be
carried out within two months.
The lender said on Thursday it had successfully completed
its capital increase for 1.5 billion euros ($2.1 billion), which
was 99.14 percent subscribed.
Three U.S. private equity funds are preparing to bid for
Banco Popolare's "bad bank" by the May 15 deadline for offers,
Il Sole 24 Ore reported on Sunday, citing market rumours.
Blackstone, Lone Star, and Fortress, the latter in
partnership with Italian property group Prelios, are conducting
due diligence on the unit, the paper said, adding that
investment manager Pimco was on the list of potential buyers but
currently little involved in the process.
* BANCA INTERMOBILIARE
The only offer still in the running for the private banking
unit that Veneto Banca has put up for sale is one by former
Banca Intermobiliare CEO Pietro D'Agui and French grop Oddo &
CIE, Il Sole 24 Ore said on Tuesday citing rumours. The paper
said Veneto Banca values the unit at around 500 million euros.
UniCredit has received 16 expressions of interest in buying
UniCredit Credit Management Bank (UCCMB), Il Sole 24 Ore
reported on Sunday without citing sources.
Blackstone, Fortress-Prelios, Lone Star and Pimco are in the
running, Il Sole said, alongside a joint bid from Goldman Sachs,
Deutsche Bank and TPG Capital, another combined offer from
Cerberus, Jupiter Asset Management and CVC Capital Partners, and
individual bids from York Capital and Oaktree.
* UNICREDIT, INTESA SANPAOLO
Italy's two largest banks, UniCredit and Intesa Sanpaolo,
have signed a memorandum of understanding with U.S. private
equity firm Kohlberg Kravis Roberts and restructuring
firm Alvarez & Marsal to better manage a pool of restructured
loans, the firms involved said in joined statement on Tuesday.
BANCA POPOLARE DI MILANO
Fitch Ratings on Thursday confirmed the bank's long-term
'BB+' rating with a negative outlook. However it cut the
viability rating to 'B+' after shareholders last week rejected a
planned governance reform. The rating agency said the banks's
weak corporate governance acted as a constraint on the ratings.
Moody's on Thursday affirmed Credito Valtellinese's long and
short-term deposit ratings at Ba3. The outlook for the long-term
deposit rating remains negative, and in line with most Italian
The dairy group confirms its 2014 guidance, with CEO Yvon
Gueirn saying the first half will be worse than the same period
of last year but the second half will be better.
Italy's stock exchange said on Thursday that shareholders
representing 27.1 percent of listed real estate fund Atlantic 1
had accepted to tender their shares in a public buyout offer
launched by Oceano Immobiliare, a unit of U.S. investment fund
Blackstone. Oceano has an overall stake of 39.5 percent
in the fund, a source close to the matter said.
Capital increase starts; ends on May 13.
* BANCA POPOLARE DI SONDRIO
The bank plans to remain independent and has no acquisitions
in sight, Chairman Piero Melazzini told Il Sole 24 Ore on
* FINCANTIERI IPO
The government plans to list a stake close to 50 percent of
the shipbuilder to fund a capital increase of up to 600 million
euros, Corriere della Sera reported on Tuesday without citing
Milan airport operator SEA is creating a new company called
Airport Handling to replace ground-handling unit SEA Handling
and intends to reserve between 20 and 30 percent of the new
company's capital for external investors, Corriere della Sera
said on Saturday.
The leather goods company is considering a public share
sale, possibly by the end of this year, Il Sole 24 Ore said on
"We just need to find the right moment," Chief Executive
Riccardo Braccialini told the paper. "Right now we are receiving
a lot of interest from abroad."
The paper said the company has annual turnover around 70
Annual general meetings: ASTM (0900 GMT), SERVIZI
ITALIA (0830 GMT), VIANINI INDUSTRIA.
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