The following factors could affect Italian markets on Friday.

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

Prime Minister Matteo Renzi denied on Sunday suggestions bythe U.S. ambassador in Rome that Italy could send up to 5,000troops to Libya, saying conditions were not in place formilitary intervention in the former Italian colony.


ECONOMY

The European Commission is set to issue a warning to Italy about the state of its public finances, requesting measures toreduce the budget deficit, several newspapers reported at theweekend. The letter should be sent to Rome on Tuesday orWednesday.


ISTAT releases January production prices (0900 GMT).

Bank of Italy releases February data on European CentralBank funding to Italian banks.


DEBT

Treasury announces sale of 12-month BOT bills, with relativeamounts to be auctioned on March 10.


COMPANIES

TELECOM ITALIA

Chief Executive Marco Patuano told Il Sole 24 Ore in aninterview on Sunday he had never been asked to sell thecompany's Brazilian business, following reports that topinvestor Vivendi was pushing for a disposal.

Asked whether he found it embarrassing to be presenting hisnew business plan while Vivendi has been examining candidatesfor his job for months, Patuano said: "Managers always respondwith their performance and shareholders are always sovereign."

A jump in the company's share price should brighten the moodof any chief executive but that is unlikely to have been theeffect this week on Marco Patuano, the head of the Italian phonecompany.

Telecom Italia wants to reach an agreement with investors infiber optic company Metroweb in coming weeks for the developmentof a broadband network in Italy, two sources close to the mattersaid on Friday.


MEDIASET, TELECOM ITALIA

Representatives of Mediaset's shareholders have met withVivendi in Paris recently to discuss the possibility of awide-ranging strategic alliance between the two groups, LaStampa said on Saturday.

The possible deal being considered would go beyondMediaset's pay-TV business and an exchange of stakes between thetwo companies has not been ruled out, even though it would notlead to a full-blown merger, La Stampa said. It said the twocompanies' positions remained distant, however.


ENI

CEO Claudio Descalzi told Il Messaggero on Sunday that thegroup had selected fund SK Capital for the sale of a majoritystake in its chemical unit Versalis.

He said he expects a pick-up in oil prices from the secondhalf of 2016. He said Eni had budgeted for an average oil priceof $40 a barrel for 2016, which could rise in the next threeyears to $50-55 and reach $65 in 2019.

(*) BANCA CARIGE, BANCA MONTE DEI PASCHI DI SIENA, VENETO BANCA IPO-VENE.MI, BANCA POPOLARE DI VICENZAIPO-BPVS.MI

The ECB is monitoring on a daily basis liquidity basis atthe four banks, Affari&Finanza said on Monday, adding thatdeposits worth 50 billion euros were moved from weak banks'accounts to stronger ones.


POPOLARE DI VICENZA IPO-BPVS.MI, UNICREDIT

Shareholders in Italy's Banca Popolare di Vicenzabegrudgingly approved a crucial fund-raising plan that includesa rights issue of up to 1.75 billion euro ($1.9 billion) toavert supervisors taking control of the troubled bank.

(*) BREMBO

The brakes maker has been called to collaborate with Appleon its idea of making an autonomous car, Corriere della Sera onMonday quoted Brembo Deputy Chairman Matteo Tiraboschi assaying.

(*) SNAM

Construction works for the Trans-Adriatic pipeline (TAP) areplanned to begin in May, SOCAR President Rovnag Abdullayev toldANS TV on Sunday. Snam is one of TAP's shareholders.

Russia's Gazprom is counting on its deep natural gas tieswith Italy to revive plans aimed at bypassing Ukraine as atransit state for politically sensitive gas shipments toEurope.

(*) STMICROELECTRONICS

The chip maker plans to invest $270 million in its plantnear Catania between 2015-2018, Chief Executive Carlo Bozottiwas quoted in CorriereEconomia as saying, adding that theItalian peninsula would remain a focus point of the group goingforward.


A2A

Italy's biggest regional utility A2A will take a 51 percentstake in smaller peer Linea Group Holding (LGH) for 113 millioneuros, it said early on Saturday.

The price will be paid 58 percent in cash and the rest inA2A shares. Part of the price will be paid after three yearsfrom closing, subject to the completion of a number ofinitiatives, it said.

The agreement is subject to certain conditions, includingthe clearance of the Italian Competition Authority, that areexpected to be fulfilled in the next 90 days.


ATLANTIA

Several newspapers reported on Saturday that the Benettonfamily was unlikely to confirm Fabrizio Palenzona as chairman ofRome airport operator ADR, which it controls through Atlantia.


FIAT CHRYSLER AUTOMOBILES, RCS MEDIAGROUP

The distribution to FCA's shareholders of the shares thegroup holds in RCS Mediagroup will be on the agenda of FCA'sshareholder meeting on April 15, Corriere della Sera said onSaturday.

(*) ASSET MANAGERS

Italian market regulator Consob investigated the 10 largestdomestic asset management companies over concerns they wereselling funds that charged high fees for active management butsimply following an index, the Financial Times said on Monday.The paper adds that the regulator plans to carry out anotherinvestigation into closet tracking in the coming months.


PRELIOS

The property company said on Friday its rights issue endedwith 91.6 percent of shares offered subscribed for value of 60.9million euros.


LANDI RENZO

Bond holders' meeting (0900 GMT).


ACSM-AGAM

Board meeting on FY results.


MOLMED

Board meeting on FY results.




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