Wires

Italy - Factors to watch on Oct. 10

The following factors could affect Italian markets on Wednesday.

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

EURO ZONE CRISIS

Italian Prime Minister Mario Monti's government unexpectedlycut the lowest income tax rates ahead of next year's nationalelection, promising to meet the budget goals it has agreed withthe European Union. The government said it would also halve aplanned increase in sales tax rates to a single percentagepoint.

Italy's Treasury sells 3.0 billion euros 3-month BOTs(short-term bills) maturing Jan. 14, 2013 and 8.0 billion euros12-month BOTs maturing Oct. 14, 2013. Subscriptions close at0900 GMT.

Eleven euro zone countries agreed on Tuesday to press aheadwith a disputed tax on financial transactions aimed at makingtraders share the cost of fixing a crisis that has rocked thesingle currency area.

* FIAT

Moody's downgraded Italian carmaker to Ba3 from Ba2 with anegative outlook, the rating agency said on Wednesday. Moody'ssaid would consider cutting Fiat's rating further if thecarmaker stand alone net industrial cash flow were to exceed anegative 2 billion euros in the current year.

Fiat managers will meet with Italian industry ministryofficials on Oct. 12 to discuss potential measures to supportcarmaker exports, Italian daily MF reported on Wednesday.

* IMPREGILO

Brazilian construction company Primav Construcoes hassweetened its offer to buy about 2 billion reais ($982 million)of shares in local toll road operator Ecorodoviasfrom Italy's Impregilo, EcoRodovias said on Tuesday.

ENI

Italy's state investment holding company, Cassa Depositi ePrestiti (CDP), completed the sale of a 3.3 percent stake in oilgroup Eni on Tuesday for 2.1 billion euros to help fundthe acquisition of a controlling stake in gas network companySnam.

* GENERALI

Italy's insurance group is studying the possibility toseparate its units Toro and Ina from the rest of the company toput together its Italian activities, Il Messaggero reported onWednesday.

* CAMFIN , PIRELLI

Malacalza family, main shareholder in the holding companycontrolled by Italian businessman Marco Tronchetti Provera,filed a complaint with prosecutors, Camfin said on Tuesday.

The aim of the complaint is to void the decision taken bythe holding company's board to issue a convertible bond inPirelli shares to refinance around 140 million eurosof Camfin debt maturing by the end of the year.

ENEL

Enel closed the sale of Endesa Ireland to Scottish andSouthern Energy (SSE) for a total of 285 million euros, thecompany said in a statement on Tuesday.

The sale will have a positive impact on Enel's consolidatednet debt of around 361 million euros, including the repaymentfrom SSE of Endesa Irelnd debt for around 75 million euros.

AZIMUT

Italy's leading independent asset manager reported net fundinflows in September of 51 million euros, totalling 1.1 billioneuros in the first nine months of the year.

The group had 19.2 billion euros in assets underadministration, of which 17.1 billion in assets under managementat the end of September.

BANCO POPOLARE

Maurizio Di Maio resigned as board member at the bank inagreement with the top management, the bank said on Tuesday.

((Milan newsroom, +39 02 6612 9507, fax +39 02 801149,milan.newsroom@news.reuters.com))

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Keywords: ITALY FACTORS/