The following factors could affect Italian markets on Friday.
Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*). * BUDGET DEFICIT
Italy's government is set to confirm the target of a balanced budget for next year in new forecasts it is readying, Il Sole 24 Ore reported, adding it would examine again the situation before the summer.
* ENI SNAM
The oil group has submitted to the Treasury a proposal on the planned separation from gas grid operator Snam, envisaging the cancellation of a 9.3 percent own stake, several newspapers reported quoting news agency Radiocor.
The move would boost current shareholders' stakes in Eni and the Treasury could then sell 3.4 percent of the group - while keeping a 30 percent stake - and use the cash to buy 16-17 percent of Snam. State-holding CDP would buy a 12 percent stake in Snam after selling its stake in the TAG gas pipeline.
Representatives from Japan's Hitachi Rail could visit AnsaldoBreda's plants in four Italian cities in the coming weeks, Il Sole 24 Ore reported. It added the due diligence process set to hand 50 percent of the Finmeccanica's rail unit to the Japanese company via a capital increase is progressing.
Shareholder foundations will have seven seats on the bank's new board, other Italian shareholders two, foreign shareholders four, Abu Dhabi's state-owned fund Aabar Investments two and Germany's Allianz one, la Repubblica reported.
The bank is likely to name for deputy chairmans after picking Giuseppe Vita as the new chairman, including Aabar's Chairman Kadem Abdulla al-Qubaisi, La Stampa reported.
* EDISON, A2A
Representatives of France's EDF are set to meet with Italian market regulator Consob on Friday on the price of the mandatory bid on Edison's minorities, Il Messaggero reported.
EDF may ask Edison's Italian shareholders to shoulder part of the extra costs it would sustain to gain control of Edison if forced to offer a higher price to buy out minority shareholders in the power producer, several newspapers reported.
Time Warner could be interested in bidding for Italian digital television frequencies at a planned tender, MF reported, a move which may prompt a reaction from Mediaset.
Italian stock market regulator Consob approved plans for the cashmere-maker to hold an initial public offering. The offering will take place between April 16-27.