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Italy - Factors to watch on March 27

The following factors could affect Italian markets on Wednesday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

CYPRUS

Cyprus is expected to complete capital control measures on Wednesday to prevent a run on the banks by depositors anxious about their savings after the country agreed a painful rescue package with international lenders.

ITALIAN POLITICS

The formation of a new Italian government is still a long way off and unless political differences can be overcome, the country may be headed for fresh elections, a senior official of Silvio Berlusconi's centre-right party said on Tuesday.

Foreign Minister Giulio Terzi resigned on Tuesday over the government's decision to return two marines to India to face trial for the murder of local fishermen while on anti-piracy duty.

BOND AUCTION

Treasury sells 3.0-4.0 billion euros new 5-year BTPs, fixed rate bonds, maturing on June 1, 2018, at 3.50 percent coupon and 2.0-3.0 billion euros third tranche 10-year BTPs maturing May 1, 2023, at 4.50 percent coupon. Subscriptions close at 1000 GMT.

ITALIAN BANKS

Italy's banking sector is well capitalised but still faces risks because of a prolonged recession and exposure to sovereign debt, the International Monetary Fund (IMF) said on Tuesday.

* TELECOM ITALIA

Marco Fossati, the group's second-biggest shareholder, wants a shareholder meeting on April 17 to discuss a no-confidence motion against Telecom's current management, La Repubblica said on Wednesday.

* FINMECCANICA

The group is considering looking for a partner for AnsaldoBreda rather than selling it, Il Sole 24 Ore said on Wednesday.

* FIAT

Fiat and its Chrysler unit are considering producing a SUV with the Jeep brand at the Russian factory of Tagaz. Russian bank Sberbank should be Fiat's partner in the operation, Il Sole 24 Ore said on Wednesday.

* RCS MEDIAGROUP

The group releases preliminary results for 2012 on Wednesday.

After Benetton Giuseppe Rotelli, the group's top shareholder, is also shying away from a capital increase, Il Messaggero said.

ENEL

The utility is interested in a 10-20 percent share in the Trans Adriatic Pipeline (TAP) project that would carry gas from the Caspian region to Italy through Greece and Albania, Enel's chief executive officer said on Tuesday.

Fulvio Conti also said Enel will not sell assets of its Spanish unit Endesa or a stake in its renewable unit Enel Green Power as part of its disposal plans.

MEDIASET

Italy's largest commercial broadcaster posted on Tuesday a 2012 net loss of 287 million euros ($369 million), against a profit of 225 million euros in 2011, hit by write-downs on sports rights as well as restructuring costs.

IMPREGILO

ASTM, a shareholder of Impregilo, said on Tuesday it would delay evaluating a takeover bid for the construction firm.

PARMALAT

The dairy group said its $900-million acquisition of a U.S. food subsidiary was in the interests of shareholders and would boost profits and cash this year.





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>

For pan-European market data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Reuters survey of world bourse outlook......... Western European IPO diary.......................... European Asset Allocation........................ Reuters News at a Glance: Equities............... Main currency report:...............................