Italian Stocks - Factors to watch on June 9

MILAN, June 9 (Reuters) - 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 (*).

TELECOM ITALIA (TLIT.MI: Quote, Profile, Research, Stock Buzz)

France's Iliad SA (ILD.PA: Quote, Profile, Research, Stock Buzz), the parent firm of Internet
service povider Free, is in exclusive talks to buy Telecom
Italia SpA's French ISP unit Alice on the basis of an enterprise
value of 800 million euros ($1.25 billion).

For a story, double click on [nL09598322].

Private equity firm Apax Partners has held informal talks
with Telecom Italia about merging the Italian operator's German
fibre optic network Hausenet with one run by Versatel
(VTWGn.DE: Quote, Profile, Research, Stock Buzz), Il Sole 24 Ore said on Saturday, citing unconfirmed
rumours.

Apax is Versatel's main shareholder.

ALITALIA (AZPIa.MI: Quote, Profile, Research, Stock Buzz)

The European Commission will tell Italy that a loan to help
Alitalia avoid bankruptcy was illegal and will demand the
airline pay it back, a source told Reuters on Friday.

The move would be a setback to efforts by Silvio
Berlusconi's government to avoid a financial collapse of the
carrier as it searches for a new owner.

For a story, double click on [nL06921582].

* Six European carriers have written to the European
Commission to say the loan violated rules on state aid and
competition, Il Messaggero and La Stampa said on Monday.

Intesa Sanpaolo (ISP.MI: Quote, Profile, Research, Stock Buzz), the government's adviser on the
sale, might decide by Friday whether airline is worth saving, Il
Giornale said on Saturday.

* TISCALI (TIS.MI: Quote, Profile, Research, Stock Buzz)

Tiscali's Chief Financial Officer Massimo Cristofori
resigned on Monday in a second high-level departure just as the
Italian broadband provider is about to be taken over.

For a story double click on [nL09618905]

FINMECCANICA (SIFI.MI: Quote, Profile, Research, Stock Buzz)

Finmeccanica might sell its stake in semiconductor maker
STMicroelectronics (STM.MI: Quote, Profile, Research, Stock Buzz) (STM.PA: Quote, Profile, Research, Stock Buzz) to help fund its purchase
of DRS Technologies Inc. (DRS.N: Quote, Profile, Research, Stock Buzz), executives of the Italian
defence and aerospace group said on Friday.

It is also planning a capital increase, a public offering of
about 60 percent of its Ansaldo Energia unit and will take on
debt to finance the acquisition, they said.

For a story, double click on [nL06676252].

Finmeccanica expects its purchase of DRS to boost revenues
to 18 billion euros in 2009, according to Il Sole 24 Ore's
"Letter to the Investor" column on Sunday.

FIAT (FIA.MI: Quote, Profile, Research, Stock Buzz)

Fiat kept its market share in Europe in May despite weak
sales, the Italian car maker's head said on Friday.

Chief Executive Officer Sergio Marchionne also stuck to his
targets for the second quarter.

For a story, double click on [nL06917196].

Union leaders say daily output at Fiat's Mirafiori plant in
Turin has declined to a daily average of 821 cars this year from
889 in 2006 and they wonder whether Fiat will resort to the
so-called cassa integrazione, according to several newspapers.
Under this system, Fiat can lay off workers temporarily and pay
them using state and company funds.

Fiat and Russia's Severstal formalised on Saturday a number
of joint ventures announced last year to make and sell Fiat cars
and engines in Russia, according to a statement. They will make
up to 90,000 diesel engines and up to 50,000 Fiat Linea sedans a
year. Production will begin this year.

INTESA SANPAOLO

The bank is considering selling Neos, a consumer credit arm,
after receiving at least four or five expressions of interest
from foreign banks, Il Sole 24 Ore said on Saturday. Its
decision might depend on the outcome of Findomestic, a consumer
finance business in which France's BNP Paribas (BNPP.PA: Quote, Profile, Research, Stock Buzz) owns a
stake.

UNICREDIT (CRDI.MI: Quote, Profile, Research, Stock Buzz)

Chairman Dieter Rampl said in an interview with Corriere
della Sera on Saturday the bank might leave Mediobanca's
(MDBI.MI: Quote, Profile, Research, Stock Buzz) shareholder pact but he did not know what might happen
by the time it expires in 2009. Rampl saw the possibility of
further consolidation among small or medium-sized banks in
Italy.

BANCA MONTE DEI PASCHI DI SIENA (BMPS.MI: Quote, Profile, Research, Stock Buzz), BANCO SANTANDER
(SAN.MC: Quote, Profile, Research, Stock Buzz)

The future partnership between the banks will focus on
corporate banking for Italian companies active outside the
country, Monte dei Paschi General Manager Antonio Vigni said in
an interview with Il Sole 24 Ore on Sunday. It could lead to
other services being offered, he said. The bank will announce in
the next few weeks a partner for its asset management business.
It is selling property worth nearly 2 billion euros, and it has
hired Rothschild and Goldman Sachs Group Inc. (GS.N: Quote, Profile, Research, Stock Buzz) to sell 125
branches to get regulatory approval for its purchase of
Antonveneta, he added.

* A2A (A2.MI: Quote, Profile, Research, Stock Buzz)

The Lombardy utility's two-board system of governance is
working but could be changed if conditions warrant, Executive
Board Chairman Giuliano Zuccoli said. Plans to incorporate
Delmi, the holding company that has partial control of generator
Edison (EDN.MI: Quote, Profile, Research, Stock Buzz), are "still in the drawer", he said.

ENEL (ENEI.MI: Quote, Profile, Research, Stock Buzz)

The power company could consider selling assets not needed
for the development of its business, Chief Executive Officer
Fulvio Conti said when asked in an interview with la Repubblica
about the sale of its gas distribution unit. He said Italy
needed nuclear power and there was the possibility of building
four or five plants of 1,800 megawatts.

BREMBO (BRBI.MI: Quote, Profile, Research, Stock Buzz)

The board named Mauro Pessi on Friday to replace Stefano
Monetini as chief executive of the car brake systems maker.

DUCATI (DMH.MI: Quote, Profile, Research, Stock Buzz)

Ducati's three main shareholders will come to own more than
70 percent of the motorcycle maker after other shareholders
accepted their offer to buy them out, a statement said on
Friday.

For a story, double click on [nL0627141].