Wires

UPDATE 1-Eni share placement was for Italy's CDP - sources

* Credit Suisse places 10.7 mln shares of Eni - sources

* Eni shares placed at 17.33 euros each - sources

* CDP to sell Eni shares to help fund Snam stake buy

(Releads, adds comments, shares)

MILAN, Oct 9 (Reuters) - A placement of shares in oil andgas group Eni on Tuesday was made on behalf of Italianstate-controlled finance group Cassa Depositi e Prestiti (CDP),sources said, as part of plans for Eni to exit gas networkcompany Snam .

"It was done by CDP," a source close to the matter said.

CDP has previously said it would sell a 3.3 percent of Enito help fund the acquisition of just under 30 percent of Snam.

The government has called on Eni to sell its controllingstake in Snam in an effort to improve competition on Italy'snatural gas market and help bring down prices for Italianconsumers.

In September CDP sold a 1.7 percent stake in Eni for 1.1billion euros ($1.4 billion).

The government considers the gas transport network of Snamand the power grid of Terna as strategic assets and iskeen for CDP to keep control.

CDP and Eni declined to comment.

Earlier on Tuesday Credit Suisse placed 10.7 million sharesin Eni for 17.33 euros each, sources told Reuters.

"The placement lasted for about three minutes," one of thesources said.

Volume in Eni shares had reached its 90-day daily average by1325 GMT.

"Shares rose because the placement reduced the overhang riskon Eni shares," an analyst said.

At 1415 GMT Eni shares were up 1.5 percent at 17.4 euroswhile the European oil and gas index was up 0.6 percent.($1 = 0.7711 euros)

(Reporting by Stephen Jewkes and Giancarlo Navach in Milan,with Francesco Canepa and David Brett in London; Editing byDavid Holmes)

((stephen.jewkes@thomsonreuters.com)(+39.0266129695)(Reuters

Messaging: stephen.jewkes.thomsonreuters.com@reuters.net))

Keywords: ENI CDP/