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 and gas group Eni on Tuesday was made on behalf of Italian state-controlled finance group Cassa Depositi e Prestiti (CDP), sources said, as part of plans for Eni to exit gas network company 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 Eni to help fund the acquisition of just under 30 percent of Snam.

The government has called on Eni to sell its controlling stake in Snam in an effort to improve competition on Italy's natural gas market and help bring down prices for Italian consumers.

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

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

CDP and Eni declined to comment.

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

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

Volume in Eni shares had reached its 90-day daily average by 1325 GMT.

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

At 1415 GMT Eni shares were up 1.5 percent at 17.4 euros while 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 by David Holmes)


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Keywords: ENI CDP/