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 (*).
POLITICS
The centre-left candidate for Rome mayor in an election seen as a test of Italy's fragile coalition government was leading the field, projections showed on Monday, but the ballot is likely to go to a run-off next month.
DEBT
The Treasury sells 2.0-2.5 billion euros of zero coupon CTZ bonds (maturing on Dec. 31, 2014) and 0.5-1.0 billion euros of 5-year euro zone inflation-linked BTPei bonds (maturing on Sept. 15, 2018) on Tuesday.
On Monday the Treasury said it would offer up to 5.75 billion euros of fixed-rate bonds (BTPs) at its regular end-month auction on May 30.
* FIAT
Talks with to buy 41.5 percent of Chrysler are in a decisive phase and Fiat will unlikely pay less than $3 billion, Corriere della Sera and other newspapers said. Il Sole 24 Ore also said Fiat is in talks with Chrysler creditor banks to review terms of a credit line worth $2.9 billion and a bond for $3.2 billion.
Corriere said a capital hike would be the best way to raise new resources in a Wall Street listing of the merged group, meaning holding company Exor would have to inject money to avoid a strong dilution.
* ENEL
Russian group Rosatom and Czech company Cez are interested in buying Enel's Slovak unit Slovenske Elektrane, whose investors gather on Tuesday, Il Sole 24 Ore said.
* FONDIARIA-SAI, BANCA CARIGE
European insurers Allianz, Axa and Munich Re and private equity fund Permira are eyeing assets that Fondiaria has to sell for antitrust reasons and the insurance assets Carige is selling, Il Sole 24 Ore said. Non binding offers for Fondiaria assets are due by mid-June, while the sale of Carige Assicurazioni and Carige Vita is still at an initial stage.
BANCO POPOLARE
The bank said on Monday it had acquired Tier 1 and Tier 2 securities worth a nominal 425.9 million euros following a buyback offer.
A Milan court on Monday acquitted Fabio Innocenzi - former CEO of Banco Popolare and current CEO of UBS Italia - of charges of false accounting relating to derivatives trading at Popolare's Banca Italease.
RCS MEDIAGROUP
The group said on Monday its controlling shareholder pact had voted to propose a reduction in the number of board members at the publisher to 9 members. The pact had decided to postpone to a future meeting the appointment of a new president.
* The publisher's largest investor Giuseppe Rotelli (16.6 percent) and the Pesenti family (7.49 percent) will not vote against a planned 400 million-euro rights issue when shareholders gather on Thursday to approve the move, Il Sole 24 Ore said.
SEAT PAGINE GIALLE
The yellow-pages group said on Monday it had asked for a delay to June 29 of the deadline set by a Turin court for the filing of proposals for composition with creditors.
ALITALIA
The Italian flagship carrier said on Monday it posted a net loss in the first quarter of 157 million euros.
For more details on today's events please see the full agenda in Italian
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