Italy - Factors to watch on Aug. 12

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 IT/DIA.

POLITICS

European leaders will hold a videoconference on Wednesday ahead of one with U.S. President Donald Trump to coordinate negotiations to end the war in Ukraine with Russia's President Vladimir Putin, a German government spokesperson said on Monday.

* All European heads of state and government, except Hungary, said in a statement on Tuesday that Ukrainians must have the freedom to decide their future and that a diplomatic solution must protect Ukrainian and European interests.

DEBT

Treasury sells 8.0 billion euros 12-month BOT bills. Subscriptions close at 0900 GMT.

COMPANIES

MEDIOBANCA MDBI.MI, BANCA GENERALI BGN.MI, ASSICURAZIONI GENERALI GASI.MI

Mediobanca investor Francesco Gaetano Caltagirone said on Monday that the information available remained insufficient for shareholders to vote on the Banca Generali deal on August 21. Without details on the proposed distribution accord between Mediobanca and Banca Generali's owner Generali, the vote is effectively a "blank cheque" in the hands of the bank's board, Caltagirone's investment vehicle VM 2006 said in a note, adding this required a change of by-laws and reserving the right to take action.

*According to newspaper MF Caltagirone is also considering an alternative plan to counter Mediobanca's project: to have the tender offer approved by a Generali GASI.MI shareholders' meeting, framing the exchange of the controlling stake in Banca Generali for 6.5% of the insurance group as a buyback, with Mediobanca required to abstain due to a conflict of interest.

LEONARDO LDOF.MI

* Fitch Ratings has upgraded the aerospace and defence group's Long-Term Issuer Default Rating (IDR) to 'BBB' from 'BBB-'. The Outlook is Stable.

Milan Stock Exchange After Hours market closed.

DIARY

Rome, Industry Ministry convenes meeting on programme for full decarbonisation of Taranto's Ilva steelworks plant (0930 GMT); followed by videomeeting with Industry Minister Adolfo Urso and representatives from trade unions (1200 GMT) and with business associations and employer representatives from the former Ilva supply chain (1330 GMT).

((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/