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Italy - Factors to watch on June 2

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 .

POLITICS

Prime Minister Matteo Renzi promised on Monday to redouble his efforts to reform Italy and shake up his divided party after anti-establishment and euro-sceptic parties posted strong results in local elections.

ECONOMY

Italy posted a state sector budget deficit of around 4.3 billion euros in May compared with a deficit of 6.5 billion euros in the same month last year, the Treasury said on Monday.

2015 Economy Festival in Trento ends. Expected attendees include Bank of Italy Governor Ignazio Visco, Autogrill CEO Gianmario Tondato, welfare institute INPS President Tito Boeri.

COMPANIES

FIAT CHRYSLER AUTOMOBILES

Fiat Chrysler Automobiles in the past year has delayed the redesign or release of at least a dozen current or new vehicles in North America, according to suppliers familiar with the company's plans. The unusual number of delays could let the automaker defer billions of dollars in investment while searching for a partner.

New car sales in Italy, Europe's fourth-largest car market, rose 10.78 percent in May from the same month a year ago to 146,582 vehicles, Italy's transport ministry said on Monday.

The CEO of Tesla said on Monday Chrysler had not asked the company about a merger.

* BAD BANK

The decree the government wants to introduce on the bad bank project contains at least 4 measures including a new "alert" bankruptcy procedure to help flag early symptoms of companies in difficulty which almost always involve delays in making payments, Il Messaggero said.

* BANCA CARIGE

The banks advising on the 850 million euro capital increase are mulling a discount of around 35 percent, Il Messaggero said.

ENI

A manager in Libya's Mellitah oil and natural gas consortium, owned by state oil firm NOC and Italy's Eni has been kidnapped, employees said on Monday.

EXOR, PARTNERRE, AXIS

PartnerRe and Axis said on Monday in a statement on the PartnerRe website they had both called special shareholder meetings on the merger of the two companies on July 24, confirming what sources told Reuters.

The two reinsurers reiterated they would recommend their shareholders vote for the merger, adding the transaction was on track to close in Q3. Exor has made a bid for PartnerRe.

CNH INDUSTRIAL

The truck company said on Monday it had completed an offer to exchange up to $500 mln of 3.375 percent notes due 2019 registered under Securities Act for outstanding unregistered 3.375 pct notes due 2019.

BANCA MONTE DEI PASCHI DI SIENA

Italian businessman Alessandro Falciai bought 163,000 Monte Paschi rights over the two days May 26 and May 28 for a total of 951,954 euros, according to filings on Monday. Falciai, already a shareholder, has previously said he will buy into the lender's 3 billion euro rights issue.

* MONDADORI

Lorenzo Suraci, main shareholder of radio station RTL 102.5, said Mondadori has considered selling Radio 191, adding RTL "had considered the matter", Il Messaggero said.

Bourse After Hours trading closed.

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........

FTSE Allstars index...

FTSE Mid Cap index....

Block trades..........

Stories on Italy...... <IT-LEN>

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