October 10, 2016 / 4:04 AM / a year ago

Italy - Factors to watch on Oct. 10

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 .

ECONOMY

ISTAT releases August industrial output (0800 GMT).

OECD releases August composite leading indicator (1000 GMT).

DEBT

Treasury announces sale of BTP bonds, with relative amounts to be auctioned on Oct. 13.

Italy’s treasury said on Friday it would sell 6.25 billion euros in 12-month BOT bills at auction on Oct. 12.

POLITICS

Italy can count on all the flexibility European Union budget rules can offer with its 2017 budget but it should not increase its already very high debt, European Commissioner for Economic and Financial Affairs Pierre Moscovici said on Saturday.

Moscovici told Corriere della Sera on Sunday the EU Commission was “a political body not a public notary” and would hold a political negotiation with Italy over its 2017 budget. Rules must be respected but politics can “interpret and adapt” them.

Italy and the Commission are likely to agree on a 2017 deficit of 2.2 percent, Il Sole 24 Ore reported on Sunday quoting sources with d irect knowledge the matter.

PM Matteo Renzi told Italian television on Sunday a decree on reconstruction following the earthquake that hit central Italy in August would be approved on Tuesday. He also urged mayors across Italy to spend to retrofit schools to improve their resistance to earthquakes as “the stability of our children is more important than the stability of EU bureaucrats.”

Italy’s anti-establishment 5-Star Movement is still ahead of the ruling PD party in the polls with 30.3 percent support versus 29.3 percent, according to a survey carried out by Ipsos PA for the Corriere della Sera on Saturday. Voters who were undecided or planned not to vote were 36.7 percent.

COMPANIES

UNICREDIT

UniCredit has invited a handful of banks to submit offers for its online broker FinecoBank, hoping the Milan-listed unit would be valued at no less than 2.5 billion euros ($2.8 billion), two sources familiar with the matter said on Friday.

(*) UNICREDIT, GENERALI, BANCA GENERALI , FINECO BANK

Generali is considering buying Fineco Bank from UniCredit, la Repubblica reported on Monday, adding that the online broker would need a 500-million-euro capital hike if it sever its ties with UniCredit as it now owns bonds worth 14 billion euros issued by its parent company.

BANCA MONTE DEI PASCHI DI SIENA

A former Italian industry minister is preparing an alternative rescue plan for bank Monte dei Paschi di Siena amid signs that an existing 5-billion euro ($5.6 billion)recapitalisation arranged by JP Morgan is failing to draw investor support, three sources familiar to the matter said.

Italian bank rescue fund Atlante said on Sunday it had no plan to invest in Monte dei Paschi and denied Quaestio Chairman Alessandro Penati could take on that role at the Tuscan bank.

Due diligence on the 27.7 billion euros of bad loans the bank intends to securitise as part of its rescue plan will be wrapped up next week, Il Sole 24 Ore said on Saturday, opening the way for a 5 billion euro bridge loan from banks and securitisation by rescue fund Atlante. Only around 1.0-2.0 billion euros of the planned 5 billion euro cash call could be raised from the market given that anchor investors could stump up 1.0-1.5 billion of the issue with a further 2.0-2.5 billion coming from conversion of bonds, the paper said. (*) Two independent teams are analyzing the bad loans of the bank ahead of their securitisation, la Repubblica said, adding that they are expected to complete their work in a month and a half at the latest.

ATLANTIA

CEO Giovanni Castellucci told Il Messaggero on Sunday the toll road group had started sounding out investors for the sale of a 15 percent stake in its domestic network operator Autostrade per l‘Italia (Aspi). The goal is to find a “financial investor with a long-term strategy such as a pension fund,” he said. The sale of a stake in Rome airport operator ADR in on hold until the Aspi sale is completed.

(*) LUXOTTICA

Andrea Dorigo, former chairman of Luxottica’s Oakley brand has left the group last month, Corriere della Sera reported on Monday.

(*) STMICROELECTRONICS

The French-Italian technology company will invest $270 million to innovate its plant based in Catania, Sicily, Corriere della Sera reported on Monday.

(*) SALINI IMPREGILO

The group will give up its request for damages if the Italian government allows it to build a bridge connecting Sicily to the Italian peninsula, Salini Impregilo CEO Pietro Salini told la Repubblica on Monday.

Italy’s transport ministry is studying a railway connection between Naples and Palermo, in Sicily, Minister Graziano Del Rio told la Repubblica on Monday. (*) PIAGGIO

The group said on Monday it had begun marketing the Ape, its three-wheel vehicle, in Mexico.

BANCA POPOLARE DI VICENZA, VENETO BANCA

Alessandro Penati, the head of the Atlante rescue fund that owns the two regional lenders, is working on a 5-prong plan to turn the banks round, including possible job cuts, Corriere della Sera said on Saturday. An offer for the banks from former Barclays head Bob Diamond and his Atlas fund, in tandem with 3 private equity groups, has not been accepted because of the tough conditions attached, it said.

Also Apax Partners, Apollo and JC Flowers have expressed an interest in the two Veneto-based banks, la Repubblica reported on Sunday. Atlante is in no rush to sell because the banks are worth less than what it paid for them, the paper said, adding insolvent loans, or ‘sofferenze’, at the two banks have risen to a combined 16 billion euros.

The board Popolare di Vicenza will need to discuss the funds’ interest when it meets on Tuesday over the bank’s upcoming business plan, Il Sole 24 Ore reported on Sunday. Popolare Vicenza declined to comment.

UNIPOL

CEO Carlo Cimbri was quoted as saying in Sunday’s Il Sole 24 Ore that the insurer was studying whether it was possible to merge its Unipol Banca unit into a larger banking group.

CATTOLICA ASSICURAZIONI

A number of conditions regulating a possible sale make it hard for Popolare di Vicenza to sell a 15 percent stake in the Italian insurer following the end of a bancassurance partnership between the two companies, Il Sole 24 Ore reported on Sunday.

TOD‘S

Tod’s Chairman and key shareholder Diego Della Valle plans to open a factory in Arquata, one of the towns in central Italy struck by an earthquake that killed nearly 300 people in August, PM Matteo Renzi told Italian television on Sunday, adding he would visit Tod’s on Tuesday.

CREDITO VALTELLINESE

The bank said on Friday it had closed the sale of a portfolio of real estate loans with a nominal value of 106 million euros to Credito Fondiario.

ENAV

Cost cutting and investments in technology are the the air traffic controller’s priorities, Il Sole 24 Ore reported on Sunday.

LUXOTTICA

Leonardo Del Vecchio’s Delfin holding company bought on Thursday 210,000 shares in the eyewear group, or 0.04 percent its capital, at 41.13 euros each, a regulatory filing showed on Friday.

INNOVATEC

Capital increase starts; ends on Oct. 27.

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........

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

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