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 (*).
Italian debt borrowing costs rose in early trade on Monday
following Prime Minister Mario Monti's weekend decision to step
down as soon as the 2013 budget law is passed.
Italian Prime Minister Mario Monti announced on Saturday
that he would resign once the 2013 budget is approved,
potentially bringing forward an election due early next year and
fuelling speculation that he might run.
The surprise announcement came two days after Silvio
Berlusconi's party withdrew parliamentary support for the
technocrat government and hours after Berlusconi said he would
run to become premier for a fifth time on a platform that
attacks Monti's stewardship of the economy.
Italian Prime Minister Mario Monti, who said on Saturday he
would resign as soon as the country's budget for 2013 is
approved, told daily La Repubblica he does not know what his
political future is.
Prospects of a political crisis in Italy sooner than
expected - after Prime Minister Mario Monti said he intends to
resign early - are expected to drive up Rome's borrowing costs
and tensions in the euro zone after months of calm on the bond
Genoa-based Banca Carige and its main shareholder,
the non profit banking foundation Fondazione Carige, are
planning to join a group of bidders seeking to acquire
Finmeccanica's Ansaldo Energia unit, Italian papers reported at
the weekend. The bidding group will meet in Milan on Monday, the
press reported, and Finmeccanica Chief Executive Giuseppe Orsi
may take part. Korean group Doosan is also interested in
acquiring Ansaldo Energia, Il Sole-24 Ore reported.
A spin-off of Telecom Italia's landline network will depend
on a more favorable European regulatory framework, Chairman
Franco Bernabe told Il Messaggero on Monday.
The automaker plans to cut one third of its workforce in
Poland, where it makes its popular Fiat 500 minicar, as a sales
slump that has forced automakers to shut plants in Western
Europe hits one of Fiat's most productive factories.
Excess production capacity is piling pressure on carmakers'
profitability as sales stagnate. Fiat has already sent most of
its Italian labor force home on a temporary layoff for most of
the fall and in some cases well into January.
The Bank of Italy is considering selling its 4.5 percent
stake in the insurer to the state-controlled Fondo Strategico
Italiano (FSI), people familiar with the situation said on
"The Bank of Italy is looking at various options, and is
leaning towards selling to FSI, but the matter is still under
consideration," said one of the people.
FSI is controlled by Cassa dei Depositi e Prestiti (CDP), a
government-owned investment fund run by the Economy Ministry.
The Italian real estate group plans to sell assets for 2
billion euros in the next five years to focus on services and to
halve its senior debt by the end of 2016, newly-appointed Chief
ExecuTive Sergio Iasi told La Repubblica on Monday.
GENERAL ELECTRIC - AVIO
General Electric is near a deal to acquire Italy's Avio, a
privately held airplane parts supplier, people familiar with the
situation said on Friday.
"General Electric is in pole position; it's working on the
details of the deal," said a person familiar with the situation.
The sale is being managed by Cinven, a private equity fund
that controls Avio.
French-Italian group STMicroelectronics said it planned to
exit its loss-making mobile chip joint-venture ST-Ericsson as
part of its new strategic plan announced Monday.