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Italy - Factors to watch on May 30

The following factors could affect Italian markets on Tuesday.


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 .




ISTAT releases April producer prices data (0800 GMT).




Italy sells 6.0-7.5 billion euros over three bonds at auction, including 5- and 10-year nominal bonds.






Corriere della Sera said indications coming from the EU Competition watchdog highlighted "several difficulties" in reaching a positive outcome over the rescue of the two Veneto banks.




Italy's fourth biggest bank Monte dei Paschi di Siena said it was in exclusive negotiations with a domestic fund and a group of investors over the sale of its bad loan portfolio, which it needs to offload to be allowed to receive state aid.


The bank, which at the end of last year had 26 billion euros in gross defaulting debts, has set a June 28 deadline for the talks with Quaestio, the fund which manages banking industry rescue fund Atlante and which will also conduct negotiations on behalf of other investors.


(*) The bank has managed to halve the request of 10,000 job cuts put forward by the EU Commission but for CEO Marco Morelli it would be necessary to spare another 1,500 units, Il Messaggero reported. The paper said Monte dei Paschi is also seeking to reduce the number of branches to be shut down to 550-600, from a downward revised request of 800 at present.




(*) The size of a planned 450 million euro share issue could rise to 600 million euros, Il Messaggero reported. The paper said Carige's board was expected to approve at a meeting on Tuesday the sale of 950 million euros in bad loans using the GACS state guarantee at a price equivalent to 31 percent of their nominal value. Bankers from Credit Suisse, Deutsche Bank and Goldman Sachs are expected to attend Tuesday's meeting.


Both Il Messaggero and Il Sole 24 Ore reported the bank's top investor Vittorio Malacalza, backed by co-shareholders Volpe and Spinelli, is at odds with CEO Guido Bastianini over issues including the spin off of a further 2.4 billion euros in bad debts. A due diligence conducted by Prelios on the portfolio to be spun off has highlighted the need for further writedowns, Il Messaggero said. Il Sole said the board was also divided over the possibility of converting an 80 million euro subordinated bond held by insurer Generali into equity.




A deadline for EU Competition authorities to rule over whether French media group Vivendi has de facto control over Telecom Italia expires on Tuesday.


Vivendi could consider replacing TI's Chairman Giuseppe Recchi with its CEO Arnaud de Puyfontaine if the European Commission ruled in its favour, la Stampa reported.




The group's Aeroporti di Roma unit started on Monday a European roadshow for the launch of a 10-year bond for up to 500 million euros that will run until Thursday, Il Sole 24 Ore reported.




The shipping group and the oil and gas group have signed a memorandum of understanding to cooperate over energy systems and in particular the transport chain of natural gas.

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