* Rottapharm had planned to list 25 pct
* Fincantieri downsized share sale offer in June
* Upcoming Sisal IPO could struggle - bankers
(Recasts, adds detail, background, sources)
By Stephen Jewkes
MILAN, July 10 Italian pharmaceuticals company
Rottapharm Madaus IPO-ROTT.MI has pulled plans for a stock
market flotation, citing unfavourable market conditions, as
Italy's market for new share issues shows signs of flagging.
In a statement on Thursday, Rottapharm said its main owner,
the Rovati family's holding company Fidim, had decided to scrap
its listing plans because of adverse market conditions and
souring investor sentiment towards southern European assets.
A string of Italian companies has tapped into more positive
investor sentiment towards southern Europe this year, spurred on
by an improved economic outlook and rising equity markets.
But punters are starting to become pickier as markets droop
and the amount of stock on offer grows. In June shipmaker
Fincantieri downsized its share sale after pricing its
stock at the bottom of its price range, while on Sunday the
economy minister said the sale of a 40 percent stake in the post
office could be delayed.
Bankers said Italian betting company Sisal, whose share sale
is set to close on July 14, may also struggle. "There's going to
be quite a lot of deal sensitivity. We're at the end of a long
period of issues and I think people are just a bit jaded right
now," one banker said.
Rottapharm, a global player with a presence in more than 85
countries, had been planning to offer 50 million shares, or 25
percent of its capital, at a price of between 7.25 and 9 euros
(Additional reporting by Pamela Barbaglia, Freya Berry and Oleg
Vukmanovic; Editing by David Holmes)