Italy - Factors to watch on May 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 IT/DIA.

DEBT

Italy posted a state sector budget deficit of 20.50 billion euros ($23.20 billion) in April compared to a shortfall of 18.19 billion euros in the same month last year, the Treasury said in a statement on Friday.

COMPANIES

UNICREDIT CRDI.MI, BANCO BPM BAMI.MI

EU antitrust regulators will rule on Italian bank UniCredit's takeover bid for its smaller rival Banco BPM by June 4, according to a filing posted on Friday on the European Commission website.

Italy's second-largest bank CEO Andrea Orcel is more inclined to drop the offer for Banco BPM than to go ahead due to the restrictive conditions set by Italy, but a final decision has not been made and will only be made after a discussion with the relevant authorities, Il Giornale reported on Sunday.

Should UniCredit withdraw, the opportunity for a merger between Banco BPM and Monte dei Paschi BMPS.MI may arise, potentially extending to Mediobanca-Banca Generali, the newspaper added.

(*) La Stampa on Monday reported that UniCredit may decide to abandon its bid for Banco BPM at Sunday's board meeting.

(*) GENERALI GASI.MI, MEDIOBANCA MDBI.MI, BANCA GENERALI BGN.MI

Generali's board on Friday will set up the internal committees, including the one for transactions with related parties that will examine Mediobanca's offer for Banca Generali, according to Saturday's editions of Corriere della Sera and La Stampa. The make up of the related parties committee will be similar to the outgoing one, with four members and a chair for one of the board members elected in the Caltagirone list, La Stampa said.

The shareholders' assembly vote on the Banca Generali deal would require a two-thirds majority and not a simple one, according to Saturday's Milano Finanza, which cites sources from the Delfin-Caltagirone camp.

Mediobanca is set to have a meeting with Prime Minister Giorgia Meloni's chief of staff, Gaetano Caputi, to illustrate its offer for Banca Generali, La Repubblica wrote on Sunday. Corriere della Sera said the meeting could take place as early as Monday.

LEONARDO LDOF.MI

Credit ratings agency Moody's on Friday raised the Italian defence company's outlook to positive from stable and affirmed its 'Baa3' rating.

STELLANTIS STLAM.MI

Sales of new cars in Italy rose by 2.71% in April compared to the same month of the previous year, the second straight increase after seven consecutive months of year-on-year declines, transport ministry data showed on Friday.

Market leader Stellantis, however, saw its sales decrease by 0.12% year-on-year, according to Reuters calculations.

WEBUILD WBD.MI

A court has ordered Argentina to pay more than $147 million to the Italian construction group after a decade-long arbitration over a bridge and toll road project, the company said on Saturday.

BANCA IFIS IF.MI, ILLIMITY ILTY.MI

The Italian lender said on Friday it had received the green light from the Bank of Italy for its bid on digital bank illimity.

(*) JUVENTUS JUVE.MI

Juventus drew 1-1 away to Bologna on Sunday, leaving the race for the last Champions League qualifying spot wide open. Juve sits fourth on 63 points, tied with Roma and Lazio, with Bologna just one point behind.

(*) LAZIO LAZI.MI

Lazio won away at Empoli 1-0 on Sunday, keeping the Roman side in the race for the last Champions League spot.

DIARY

Milan, 58th edition of the Asian Development Bank (ADB) annual event "Sharing Experience, Building Tomorrow" continues; ends on May 7. On Monday Bank of Italy Governor Fabio Panetta delivers introductory remarks; expected attendees include Economy Minister Giancarlo Giorgetti, Economy Ministry Treasury Director General Riccardo Barbieri Hermitte, Generali GASI.MI Chairman Andrea Sironi and CEO Insurance Giulio Terzariol, Bank of Italy Vice Governor Paolo Angelini, Economy Undersecretary Lucia Albano.

Milan, "Next Milan forum 2025" starts (1230 GMT); ends on May 6. On Monday Assicurazioni Generali GASI.MI Chairman Andrea Sironi delivers opening address; expected attendees include World Trade Organization (WTO) Director General Ngozi Okonjo-Iweala, EU Commissioner for Intergenerational Fairness, Youth, Culture and Sport Glenn Micallef.

((Milan newsroom, e-mail: reutersitaly@thomsonreuters.com))

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

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

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

FTSE IT allshare index .FTITLMS

FTSE Mib index........ .FTMIB

FTSE Allstars index... .FTSTAR

FTSE Mid Cap index.... .FTITMC

Block trades.......... .BLK.MI

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

For pan-European market data and news, click on codes in
brackets:

European Equities speed guide...................EUR/EQUITY

FTSEurofirst 300 index...............................FTEU3

DJ STOXX index.......................................STOXX

Top 10 STOXX sectors............................PGL.STOXXS

Top 10 EUROSTOXX sectors.......................PGL.STOXXES

Top 10 Eurofirst 300 sectors....................PGL.FTEU3S

Top 25 European pct gainers........................PG.PEUR

Top 25 European pct losers.........................PL.PEUR

Main stock markets:

Dow Jones................DJI Wall Street report ......N

Nikkei 225..............N225 Tokyo report.............T

FTSE 100................FTSE London report............L

World Indices.....................................0#.INDEX

Reuters survey of world bourse outlook.........EQUITYPOLL1

Western European IPO diary..........................WEUIPO

European Asset Allocation........................EUR/ASSET

Reuters News at a Glance: Equities...............TOP/EQE

Main currency report:...............................FRX/