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Italy - Factors to watch on May 27

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 (*).

POLITICS

Romans went to the polls on Sunday to elect a new mayor of Italy's capital in a vote which could have repercussions for the fragile national government of Prime Minister Enrico Letta. Polls close Monday afternoon. [IT:nL5N0E60GH]

ECONOMY

Treasury announces sale of BTPs, fixed rate bonds, with relative amounts to be auctioned on May 29.

* The European Commission will close on Wednesday a procedure against Italy started in 2009 when Rome breached the European Union's deficit ceiling of 3 percent of gross domestic product, several Italian newspapers said quoting Commission documents.

The closing of the procedure will put an end to strict EU monitoring of Italian public spending and allow the freeing up resources for up to 12 billion euros ($15.52 billion), Regional Affairs Minister Graziano Delrio told La Stampa on Monday.

COMPANIES

* FINMECCANICA

A decision to name the new company chairman, currently expected on May 30, could be put off by the new government to a later date, Corriere said without quoting sources.

COMPANIES

IKF board meeting on FY results.

Primi Sui Motori capital increase starts; ends on June 27.

Rcs MediaGroup holds main shareholders' pact meeting (afternoon).

Saras, partial and voluntary takeover bid by Rosneft JV Projects S.A. starts; ends on June 14.

ILVA STEEL PLANT The management board of Italian steel group ILVA has resigned, the company said on Saturday, following the seizure of 8 billion euros of assets from its controlling company in connection with allegations of environmental crimes. ILVA, whose main plant in the southern city of Taranto is Europe's largest, has been under special administration since July last year and prosecutors are also investigating its main shareholder, Emilio Riva, for tax evasion.

FIAT

Fiat Chief Executive Sergio Marchionne is talking to Deutsche Bank, Bank of America and Goldman Sachs, as well as other banks, about potential financing for an upcoming buyout of the stake in U.S. automaker Chrysler that Fiat does not already own, said the Wall Street Journal on Saturday without citing sources. The buyout is likely to trigger a chain reaction of deals worth $20 billion, the paper said.

For more details on today's events please see the full agenda in Italian.

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:...............................