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Italy - Factors to watch on May 25

The following factors could affect Italian markets on Thursday.

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

For a complete list of diary events in Italy please click on .

ECONOMY

ISTAT releases March industry orders and sales data (0800 GMT) and April non-EU foreign trade data (0900 GMT).

Rome, conference on "Fiscal Digital Innovation" with Economy Minister Pier Carlo Padoan (0945 GMT).

Assogestioni releases April fund flows data.

DEBT (*) Italy's Treasury said on Wednesday it would offer 6.0 billion euros in 6-month bills at auction on May 29.

Treasury offers following five bonds in swap of maximum 3.0 billion euros of 2.15 percent BTP Italia bonds due Nov. 2017: 4.50 percent BTP bonds due Feb. 1, 2020, 5.00 percent BTP bonds due March 1, 2025, 6.50 percent BTP bonds due Nov. 1, 2027, 1.65 percent BTP bonds due March 1, 2032 and CCTeu bonds due July 15, 2023.

Treasury announces sale of BTP and CCTeu bonds, with relative amounts to be auctioned on May 30.

COMPANIES (*) FIAT CHRYSLER AUTOMOBILES

The car group believes a software update can address U.S. regulators' contention that its diesel vehicles are producing excess emissions, a lawyer for the company said at a court hearing on Wednesday. The lawyer admitted no wrongdoing by the Italian-American automaker, however.

VENETO BANCA, POPOLARE DI VICENZA

The European Commission on Wednesday turned down a request to reduce a 1 billion euro private capital injection for two ailing regional banks, needed to approve a state-backed rescue plan, four sources said. (*) The possible resignation of the Chief Executives and Chairmen of the two banks are being considered, Il Sole 24 Ore reported. (*) Fonspa could work together with banking fund Atlante to carry out a due diligence on the banks' bad loan portfolio, Il Sole 24 Ore reported.

(*) BANCA MONTE PASCHI DI SIENA

Some 27 billion euros of the bank's bad loans will be securitised and transferred to a purposely-created vehicle at 20 percent of their gross value, Il Sole 24 Ore reported.

The vehicle will issue 1.6 billion euros in junior and mezzanine asset-backed securities, of which Italian banking fund Atlante will buy 900 million euros and the remaining will be picked up by Fonspa and Fortress, the report added.

Fonspa, Fortess and Atlante will announce both their involvement and plans next week, the report added.

The deputy chairman of the European Investment Bank (EIB) Dario Scannapieco told La Stampa that the EIB could "invest in securitisation, but not buying problematic loans" when asked about the possibility of investing in Monte dei Paschi.

(*) ITALIAN BANKS

Healthy Italian banks should not be forced to spend more money rescuing weaker rivals, Intesa Sanpaolo's chief executive said on Wednesday, criticising the European authorities for taking too long to approve state aid for three lenders. (*) MEDIASET, VIVENDI

The family holding company of former prime minister Silvio Berlusconi could raise its stake in the Italian broadcaster to over 40 percent in the next six months, Il Sole 24 Ore reported, without giving details.

(*) TELECOM ITALIA, VIVENDI

The French media group will not make any further concessions to EU antitrust regulators to gain control of the phone incumbent, except for the suggested sale of Telecom Italia unit Persidera, Il Sole 24 Ore reported. The EU regulator could postpone a decision on Vivendi's control over Telecom Italian, expected on May 30, by up to a further 90 days, the report added.

(*) TELECOM ITALIA, ENEL

Telecom Italia's Giuseppe Recchi said there is "no dialogue" between the group and Enel's broadband unit Open Fibre over an alliance for the rollout of broadband in Italy, both la Repubblica and Il Sole 24 Ore reported.

ALITALIA

The airline said on Wednesday it plans to introduce a temporary layoff scheme under which workers will work and earn less but no jobs will be cut. The scheme will be applied to make cost savings equal to 828 jobs for ground staff and up to 190 pilots and 340 flight attendants.

AUTOGRILL

Annual general meeting (0830 GMT) and board meeting on revenues up to April 30, 2017.

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