December 5, 2016 / 5:01 AM / a year ago

Italy - Factors to watch on Dec. 5

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 (*).

For a complete list of diary events in Italy please click on .

POLITICS

Italian Prime Minister Matteo Renzi said he would resign after suffering a crushing defeat on Sunday in a referendum on constitutional reform, tipping the euro zone’s third-largest economy into political turmoil.

Renzi won a little over 40 percent of the vote in the referendum, a far worse result than polls had predicted. It ended months of campaigning for a reform that he said would have brought political stability to Italy but that opponents said jeopardised democratic checks and balances.

ECONOMY

Markit releases November service Pmi data (0845 GMT).

ISTAT releases monthly bulletin on the state of the economy in November (0900 GMT).

COMPANIES

BANCA MONTE DEI PASCHI DI SIENA

The bank’s advisers are expected to meet on Monday to take a decision on the capital raising following the referendum’s outcome.

The ailing Italian bank said on Friday provisional data showed the take-up of a debt swap offer that is a crucial plank of its rescue plan exceeded 1 billion euros ($1.1 billion). Final results of the swap offer will be released by Monday.

The debt-to-equity swap could reach the value of 1.2-1.4 billion euros, boosted by some deep-pocketed private bond holders, Corriere della Sera reported on Saturday.

Retail investors represented over half of the 4.2 billion euro bonds subject to the conversion, and deserted the swap offer, Il Sole 24 Ore reported on Saturday.

With 400 million euros of the total 1 billion euros raised by the swap offer coming from insurer Generali, the remaining amount came from hedge funds and institutional investors, below market expectations, the report added.

The Qatar Investment Authority could meet financial and legal advisors from Rothschild and Freshfields on Monday for a potential pre-agreement to inject up to 1 billion euros in the bank, conditional however on the outcome of the referendum vote, Il Sole 24 Ore reported on Sunday.

The bank’s board will meet on Tuesday, the report added.

ITALIAN BANKS

Popolare di Sondrio and Popolare di Bari will be the first banks to be affected after Italy’s top administrative court on Friday said that some aspects of a reform that forced large cooperative banks to become joint-stock companies may be unconstitutional, several dailies reported on Saturday.

The two lenders, which were planning to transform into joint stock companies this month, risk having to postpone the board meetings needed to approve their conversion, reported La Stampa on Saturday.

The Bank of Italy and the Economy Ministry are working on a solution that would allow the transformations to go ahead despite the decision by the administrative court, reported Il Sole 24 Ore on Sunday.

It would likely be a government decree, to be approved quickly, but a decision will be taken after the referendum, added the unsourced report.

UNICREDIT

UniCredit, Italy’s biggest bank by assets, has started exclusive talks with France’s Amundi to sell its asset management arm Pioneer Investments as it strives to boost its capital base.

BANCA POPOLARE DI VICENZA

The bank suffered “several hundred million euros” in damages caused by former management, the unlisted bank said in a document it prepared ahead of a Dec. 13 shareholders’ meeting, called to approve legal action against past managers. The report added that the damages are due to allegedly “serious and repeated irregular lending practices” and past investments in the Athena and Optimum funds.

ENEL

President Patrizia Grieco said institutional investors have increased their stake in the company to 53.6 pct, from 40 pct three years ago, in a an interview with Milano Finanza on Saturday. Grieco explained this was due to the utility’s good governance and was a consequence to the Italian Economic Ministry cutting its stake to 23.6 percent from 31.2 pct, the report added.

ENI

One person was killed in a fire on an oil platform operated by ENI Congo off the coast of the Congo Republic city of Pointe-Noire,the government said. ENI said in a statement the platform was immediately evacuated and the fire was quickly extinguished by emergency teams.

ALERION CLEAN POWER

Eolo Energia, the vehicle Italian utility Edison set up with F2i investment fund, picked up a 7.55 stake in Alerion in a takeover bid that ended on Friday, said a filing by the Italian bourse.

Edison said on Friday Eolo and F2i combined held a stake of 38.9 pct in Alerion Clean Power.

Eolo Energia has until end-December to launch a new takeover bid on the full capital of Alerion, given the combined share with F2i goes beyond the 30 percent threshold, il Sole 24 Ore reported on Saturday.

MEDIASET

Italian state broadcaster RAI is interested in bidding for the rights to air Champions League soccer matches, due to go up for auction next year, la Repubblica reported on Saturday. RAI would like to air “one match” paying 40 million euros per year, while Sky would pay 60 million euros a year to broadcast all the matches. Mediaset, which currently holds the rights until 2018, would be excluded, added the unsourced report.

LUXOTTICA

Salmoiraghi & Viganò, the optical retail chain that Luxottica agreed to take full control of, said on Friday sales rose 12.5 percent in the financial year to Sept. 30 to more than 213 million euros, driven by its prescription business. Earnings before interest tax, depreciation and amortisation rose by around 80 percent to 39 million euros. The premium eyewear chain, which opened 16 new shops in the period, said like-for-like sales rose 10 percent for the third year in a row.

STEFANEL

The Italian clothing company is working against the clock to secure an investment from a partner by the end of the year and avert the risk of bankruptcy, three sources told Reuters on Friday.

IL SOLE 24 ORE

The Italian publisher said on Friday its Chief Financial Officer Valentina Montanari resigned and that Giancarlo Coppa would cover the position from Dec 5.

For Italian market data and news, click on codes in brackets:

20 biggest gainers (in percentage)............

20 biggest losers (in percentage).............

FTSE IT allshare index

FTSE Mib index........

FTSE Allstars index...

FTSE Mid Cap index....

Block trades..........

Stories on Italy...... IT-LEN

For pan-European market data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Reuters survey of world bourse outlook......... Western European IPO diary.......................... European Asset Allocation........................ Reuters News at a Glance: Equities............... Main currency report:...............................

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