Italian Stocks - Factors to watch on Monday

MILAN, May 10 (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 (*).

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

Aerospace and defence company Finmeccanica SpA is close to
making an offer of nearly 3.5 billion euros ($5.41 billion) for
U.S. military engineering company DRS Technologies Inc. (DRS.N: Quote, Profile, Research, Stock Buzz),
Il Sole 24 Ore business daily reported on Sunday.

The board could formalise its offer on Monday, it said.

For a story, double click on [nL11103147].

Finmeccanica will carry out a capital increase to finance
the deal, along with a bridge loan of about 2 billion euros, Il
Giornale reported on Monday. The loan is likely to be converted
into a bond. Finmeccanica also could sell shares in chip maker
STMicroelectronics NV (STM.PA: Quote, Profile, Research, Stock Buzz) to help pay for the buy and sell
off part of DRS once the deal is completed, it said.

ENI SPA (ENI.MI: Quote, Profile, Research, Stock Buzz)

* The oil company and other members of a Western consortium
developing the giant Kashagan oilfield in Kazakhstan have
proposed delaying the start of production to 2012-13, Kazakh
Energy Minister Sauat Mynbayev said on Monday.

He said Kazakhstan would impose sanctions on the group in
case of output delays.

For a story, double click on [nL12562808]

Libya on Friday accepted an apology from a newly appointed
Italian minister who offended Muslims in 2006, and withdrew
threats of "repercussions" against Italy.

For a story, double click on [nL09133632].

UBI BANCA SPA (UBI.MI: Quote, Profile, Research, Stock Buzz)

Italy's fith-biggest retail bank UBI Banca is ready for
buying opportunities and has a strong enough balance sheet for
acquisitions, its chief executive officer told Reuters on
Friday, but no talks are under way.

For a story, double click on [nMAT008169].

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

The Italian government is seeking a "domestic solution"
involving private investors for ailing airline Alitalia, the new
economy minister said on Saturday.

For a story, double click on [nL10414013].

Candidates for new chief executive officer include
turnaround specialist Mario Resca and Maurizio Basile, a former
executive at Aeroporti di Roma, Il Sole 24 Ore reported on
Sunday.

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

According to documents filed with the U.S. Securities and
Exchange Commission, Spain's Telefonica SA (TEF.MC: Quote, Profile, Research, Stock Buzz) has an
option to buy out Telco's stake in Telecom Italia in case the
other partners plan to sell their shares to third parties, Il
Sole 24 Ore reported on Saturday.

IRIDE SPA (IRD.MI: Quote, Profile, Research, Stock Buzz), ENIA (EN.MI: Quote, Profile, Research, Stock Buzz), HERA (HRA.MI: Quote, Profile, Research, Stock Buzz)

The regional utilities could sign a letter of intent for a
tie-up shortly and name advisers for a deal, with a view to
having a single company listed on the bourse in mid-2009, La
Repubblica said on Monday.

Rome utility Acea SpA (ACE.MI: Quote, Profile, Research, Stock Buzz) could seek a tie-up with
Lombardy's A2A (A2.MI: Quote, Profile, Research, Stock Buzz), it said.

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

Italy's Agnelli family has given no mandate to sell Fiat
SpA's car business, the outgoing head of the holding that
controls the industrial group said in an interview published on
Sunday.

For a story, double click on [nL11104434].

LOTTOMATICA SPA (LTO.MI: Quote, Profile, Research, Stock Buzz)

The lottery operator is expecting 2008 revenues of more than
2 billion euros and earnings before interest, tax, depreciation
and amortisation of about 760 million euros, Il Sole 24 Ore said
in its Sunday "Letter to the Investor".

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

Broadband operator Tiscali should have received offers from
six bidders, Milano Finanza reported on Saturday. They are
Vodafone Group Plc (VOD.L: Quote, Profile, Research, Stock Buzz), Carphone Warehouse Group Plc
(CPW.L: Quote, Profile, Research, Stock Buzz), British Sky Broadcasting Group Plc (BSY.L: Quote, Profile, Research, Stock Buzz), Fastweb SpA
(FWB.MI: Quote, Profile, Research, Stock Buzz), BT Group Plc (BT.L: Quote, Profile, Research, Stock Buzz) and Italy's Wind, it said.

Vodafone and another company would have offered to buy the
entire company, while the others are interested only in British
or Italian assets, Milano Finanza said. Tiscali's board will
meet on Monday and the company releases first-quarter results.

BANCA ITALEASE (BIL.MI: Quote, Profile, Research, Stock Buzz)

The leasing company could turn in an "extremely positive"
surprise this year, Mimmo Guidotti, vice chairman of Italease's
executive board, said on Saturday.

SAFILO (SFLG.MI: Quote, Profile, Research, Stock Buzz)

Safilo Chairman Vittorio Tabacchi told la Repubblica's
Finanza & Mercati in an interview on Monday it would be
difficult for eyewear groups in the Bellunese area to keep
export growth rates at around 80 percent as in past years
because of dollar weakness.

He said China presented an opportunity for the groups, whose
main export markets are eastern Asia, the Gulf and European
countries.

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

The regional utility is ready to start tie-up talks with
smaller Lombardy peers ACSM SpA (ACSM.MI: Quote, Profile, Research, Stock Buzz) and AGAM Monza SpA,
Borsa & Finanza reported on Saturday. A2A then would look for
tie-ups with Linea Group Holding and Mantua utility Gruppo TEA
SpA.

ASCOPIAVE SPA (ASCI.MI: Quote, Profile, Research, Stock Buzz)

Northeastern utility Ascopiave has put aside plans for a
tie-up with other regional companies, Chairman Guido Salton was
quoted as saying in Il Sole 24 Ore on Saturday. The company is
in talks with an unnamed Lombardy group with mostly private
capital, he said.

The following companies report first-quarter results on
Monday: TERNA SPA (TRN.MI: Quote, Profile, Research, Stock Buzz), AUTOGRILL SPA (AGL.MI: Quote, Profile, Research, Stock Buzz), GEOX SPA
(GEO.MI: Quote, Profile, Research, Stock Buzz), RCS MEDIAGROUP SPA (RCSM.MI: Quote, Profile, Research, Stock Buzz) and SEAT PAGINE GIALLE
SPA (PGIT.MI: Quote, Profile, Research, Stock Buzz)