The following factors could affect Italian markets on Monday.

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 IT/DIA.

POLITICS

Italy faced pressure on Friday to explain its relationship with Israeli spyware maker Paragon following reports that the company had cut ties with Rome over allegations that the government had used its technology to hack the phones of critics instead of criminals.

DEBT

Italy's Treasury said on Friday it would sell 8.0 bln euros in BOT bills at the auction on Feb. 12.

Treasury announces sale of BTP bonds, with relative amounts to be auctioned on Feb. 13.

COMPANIES

TELECOM ITALIA (TIM) TLIT.MI

French telecoms group Iliad and CVC Capital Partners have separately informed the Italian government of their respective interest in potential deals involving former phone monopoly, sources told Reuters on Friday.

Iliad informed top government officials this week that the French firm is studying a tie-up between its Italian business and TIM, said a source.

Meanwhile, representatives of private equity firm CVC, who had held talks with France's Vivendi VIV.PA to buy its 24% stake in TIM, also discussed their plans with senior Italian government officials in recent weeks, another two sources said.

(*) TELECOM ITALIA TLIT.MI, POSTE ITALIANE PST.MI

The Italian postal service operator is considering a potential investment in Telecom Italia, two people with knowledge of the matter said on Monday.

No decision has yet been taken, the sources said, and Telecom Italia does not feature on the official agenda of a board meeting Poste has called for Monday, one of them added.

BPER BANCA EMII.MI, POPOLARE DI SONDRIO BPSI.MI

BPER's CEO on Friday said its 4.3 billion euro all-share takeover bid for smaller peer Banca Popolare di Sondrio was a defensive move prompted by a raft of merger proposals acrossItaly's banking industry.

Popolare di Sondrio's board will meet on February 11 to consider the bid, which it said was neither requested nor agreed.

Unipol UNPI.MI Chairman Carlo Cimbri described the merger between the two banks as a "natural marriage" and said the insurer, which is the largest investor in both banks, would be able to count on a stronger bank to distribute its products, he was quoted as saying by Il Sole 24 Ore on Saturday.

FERRAGAMO SFER.MI

The group's founding family has sought to reassure staff this week that it remains committed to the luxury group after Monday's surprise news that CEO Marco Gobbetti was leaving, a person with knowledge of the matter said.

IVECO IVG.MI

The truck and bus maker is considering spinning off its defence unit this year to simplify the group's structure and create greater flexibility for both businesses, it said on Friday, sending shares up over 20%.

JUVENTUS FC JUVE.MI

Randal Kolo Muani converted an 89th minute penalty to earn Juventus a 2-1 win away to Como on Friday, with the French forward scoring both goals for the visitors, to make it five goals in his first three Serie A games.

LAZIO LAZI.MI

The Rome club climbed to fourth place in Serie A after a 5-1 home victory at the Olimpico against AC Monza on Sunday.

MEDIOBANCA MDBI.MI

Releases H1 results (1630 GMT).

BANCA GENERALI BGN.MI

Releases preliminary FY results.

DIARY

Rome, Meeting on the Western Balkans chaired by Foreign Minister Antonio Tajani; expected attendees include EU Foreign Policy Chief Kaja Kallas, EU Commissioner for Enlargement Marta Kos (1130 GMT); Tajani holds press point (1130 GMT) followed by closed-door working sessions.

Milan, Infrastructure and Transport Minister Matteo Salvini visits the areas of the former 'Scalo di Porta Romana' to check the progress of works for the construction of the Olympic Village for the Milan-Cortina 2026 Winter Games (0900 GMT).

((Milan newsroom, e-mail: reutersitaly@thomsonreuters.com))

For Italian market data and news, click on codes in brackets:

20 biggest gainers (in percentage).............PG.MI

20 biggest losers (in percentage)..............PL.MI

FTSE IT allshare index .FTITLMS

FTSE Mib index........ .FTMIB

FTSE Allstars index... .FTSTAR

FTSE Mid Cap index.... .FTITMC

Block trades.......... .BLK.MI

Stories on Italy...... IT-LEN

For pan-European market data and news, click on codes in brackets:

European Equities speed guide...................EUR/EQUITY

FTSEurofirst 300 index...............................FTEU3

DJ STOXX index.......................................STOXX

Top 10 STOXX sectors............................PGL.STOXXS

Top 10 EUROSTOXX sectors.......................PGL.STOXXES

Top 10 Eurofirst 300 sectors....................PGL.FTEU3S

Top 25 European pct gainers........................PG.PEUR

Top 25 European pct losers.........................PL.PEUR

Main stock markets:

Dow Jones................DJI Wall Street report ......N

Nikkei 225..............N225 Tokyo report.............T

FTSE 100................FTSE London report............L

Xetra DAX..............GDAXI Frankfurt market stories.F

CAC-40..................FCHI Paris market stories....PA

World Indices.....................................0#.INDEX

Reuters survey of world bourse outlook.........EQUITYPOLL1

Western European IPO diary..........................WEUIPO

European Asset Allocation........................EUR/ASSET

Reuters News at a Glance: Equities...............TOP/EQE

Main currency report:...............................FRX/