MILAN, Jan 22 (Reuters) - The following factors could affect Italian markets on Thursday.
Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).
The holding company of Italy’s Agnelli family is considering a possible capital increase of about 2 billion euros for Fiat, said la Repubblica newspaper. The Agnellis own 30 percent of Fiat. [ID:nLM145593]
The car maker publishes its fourth-quarter and full-year results. Analysts expect Fiat to miss slightly its profit target for 2008 despite slightly higher sales given the heavy costs sustained from the worst crisis to hit the car industry in decades. [ID:nLK421709]
Chrysler LLC’s deal with Fiat depends on the U.S. automaker receiving an additional $3 billion emergency loan from the U.S. government, the company’s product development chief said on Wednesday. [ID:nN21497039]
Fiat will decide within a year whether to take another 20 percent of troubled U.S. car maker Chrysler for $25 million, a source close to the Italian industrial group told Reuters on Wednesday. [ID:nLL255658]
Fiat’s agriculture and construction machinery unit CNH Gloval NV CNH.N reported fourth-quarter earnings below consensus and said it sees full year 2009 equipment sales down between 10 and 20 percent. [ID: nWNAB2042]
Il Sole 24 Ore reported that Fiat is negotiating with Banks for a 5 billion euros credit line.
Fiat’s talks on restructuring its debt include Intesa Sanpaolo (ISP.MI), UniCredit (CRDI.MI) and three foreign banks, said MF newspaper.
* Il Messaggero said Fiat is discussing a 1.5 billion euro back-up facility, a credit line aimed at demonstrating Fiat has the confidence of the banking world.
Fiat also decided Wednesday on more production halts in Italy and Brazil. [ID:nLL59512] [nN21476163]
Libyan leader Muammar Gaddafi said on Wednesday Libya was looking into nationalising oil companies due to low oil prices and suggested Tripoli might also not be able to meet OPEC oil production quotas. [ID:nWBT010458]
Libya is a key production country for Eni. In 2007 Libya contributed 14.5 percent to Eni’s oil and gas output. BANK LENDING
Italian banks will not reduce lending despite a rise in non-performing loans and will help companies that have temporary difficulties, president of the Association of Italian Banks Corrado Faissola said, cited in La Stampa.
BANCO POPOLARE BAPO.MI/POPOLARE MILANO PMII.MI
Banca Popolare di Milano and Banco Popolare are among the cooperative bank contenders to acquire control of ARCA, the Italian asset manager currently owned jointly by a series of cooperative banks, MF newspaper said.
* PARMALAT (PLT.MI)
Parmalat’s October loss in the U.S. courts in a claim against Citigroup was a “total defeat”, the dairy company’s Chief Executive Enrico Bondi said, cited in Finanza & Mercati newspaper.
Parmalat is appealing the U.S. jury award of $364 million damages and will pursue its earlier $2.2 billion damages claim against Citigroup, which was rejected by the jury, Bondi was quoted saying in the newspaper.
Morgan Stanley has cut the price target for the aerospace and defence group to 15 euros from 23 euros, keeping its “overweight” rating.
UBI BANCA (UBI.MI)
The bank’s strong local roots, particularly in the Lombardy region, will enable it to retain customers in its private banking business in the face of the financial crisis, the unit’s head Gianluca Bisognani told Reuters in an interview. [ID:nLL729038]
The power group is not worried one way or the other about a planned reform by the government of the price setting mechanism on Italy’s power exchange (IPEX), Chief Executive Fulvio Conti said on Wednesday. [ID:nLL58677]
SMALL AND MID-CAP COMPANIES
* TISCALI (TIS.MI)
Citigroup cut its Tiscali price target to 0.15 euros, from 1.25, with a “sell” rating on the Italian internet company.
* Differences remain with British Sky Broadcasting Group Plc BSY.L over the valuation of Tiscali’s British assets, Corriere della Sera said. The companies are in talks over their sale.
* GEOX (GEO.MI)
Mario Moretti Polegato, the shoe company’s chairman, said growth in orders for the spring-summer collection will slow to 7 percent from 13 percent the year before, Finanza e Mercati reported. He was “optimistic” about a possible dividend.