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Italy - Factors to watch on September 27

The following factors could affect Italian markets on Friday.

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

POLITICS

Italy's fractious coalition government will try to work out on Friday how to avert a planned rise in sales tax while reining in a budget deficit which is over shooting European Union limits.

Italian Prime Minister Enrico Letta said he would meet President Giorgio Napolitano on Friday to discuss the tense political situation following threats by the centre-right party of Silvio Berlusconi to pull out of his coalition government.

A cabinet meeting on Friday will discuss special powers legislation to protect strategic assets like the telecoms fixed-line backbone network.

ECONOMY

European Central Bank Governor Mario Draghi at Bocconi University meeting to commemorate Luigi Spaventa with President Giorgio Napolitano, Bank of Italy Governor Ignazio Visco, former Prime Minister Mario Monti (0900 GMT).

National statistics institute ISTAT releases September business confidence data (0800 GMT).

DEBT

Treasury sells 2.5-3.0 billion euros 5-year BTPs and 2.5-3.0 billion euros 10-year BTPs. Subscriptions close at 0900 GMT.

COMPANIES

INTESA SANPAOLO

Enrico Cucchiani, the CEO of Italy's No.1 retail bank Intesa Sanpaolo, could be forced out next week after clashing with supervisory board chairman Giovanni Bazoli and the bank's second-largest investor, sources close to the bank told Reuters. * Cucchiani is expected to meet with Bazoli on Sunday, Il Sole 24 Ore said.

TELECOM ITALIA

The Italian government is considering changes to corporate law that could force shareholders owning less than 30 percent of a company to launch a takeover bid, a senior Treasury official said on Thursday.

Telecom Italia Chairman Franco Bernabe expected to speak before Senate Industry Committee (0630 GMT).

* GENERALI

The CEO is expected to inform the board on Friday about the possibility of leaving the shareholder pact of Mediobanca, communciating the intention to withdraw before Monday, Corriere della Sera said.

* HERA, IREN

Investment banks are looking at how to structure a possible tie up between multiutilities Hera and Iren though the timeline is long, MF said.

PIRELLI

The tyremaker said on Thursday it had appointed Gregorio Borgo as General Manager Operations to help streamline geographical coordination of the group's business.

ALITALIA

Struggling Italian carrier Alitalia will seek a capital increase of at least 100 million euros ($135 million), it said on Thursday after reporting another heavy loss for its first half. * DATALOGIC

The group said on Friday it expects revenues to grow by over 5 percent per year in the period 2012-2015 to reach 535-545 million euros in 2015 and EBITDA by around 8 percent to reach 78-80 million euros.

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>

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