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

.

POLITICS

Syrian rebels entered the residence of the Italian ambassador in Damascus on Sunday, but did not harm him or his security staff, Italian Foreign Minister Antonio Tajani said, calling for a peaceful transfer of power in the country.

The European Union and South America's Mercosur bloc have finalised a free trade agreement, the European Commission said on Friday but it faces a tortuous battle for approval in Europe given French and Italian opposition.

DEBT

Treasury details sale of BTP bonds to be auctioned on Dec. 12.

COMPANIES

UNICREDIT , BANCO BPM

France's Credit Agricole upped the stakes in a banking battle over Banco BPM on Friday, by using derivatives to raise its holding in the Milanese lender that has become a takeover target for UniCredit.

Credit Agricole had informal backing from the Italian government before making that move, two sources close to the matter told Reuters on Saturday.

UniCredit is ready to sit down with Credit Agricole, a spokesperson for the Italian bank said in a LinkedIn post on Saturday.

UniCredit may have already signed derivative contracts with an investment bank in order to enter into Banco BPM with a significant initial stake at the right moment, daily Il Sole 24 Ore reported on Saturday.

Banco BPM is preparing to give Citigroup and Lazard a mandate to advise over the unsolicited takeover bid by UniCredit, two people close to the matter said on Friday. Banco BPM, Citi and Lazard all declined to comment.

Banco BPM is considering asking market regulator Consob for an exemption from the so-called passivity rule, which stops takeover targets from taking actions against buyout bids without the approval of shareholders, Il Sole 24 Ore reported on Sunday.

Banco BPM's CEO Giuseppe Castagna told reporters on Saturday that he was "very pleased" about Credit Agricole's raising of its stake. He said the move "confirmed their support" for Banco BPM.

UNICREDIT

The bank said on Friday a German probe over alleged tax evasion concerned a single former client, after its Munich offices were raided in an investigation into a possible 200 million euro ($212 million) fraud.

GENERALI

The insurer aims to clinch a preliminary agreement with Natixis SA within its investor day on January 30 to combine their asset management operations, potentially adding to a wave of deals across the industry, Bloomberg News reported on Friday.

STELLANTIS

Stellantis said on Friday it planned to rejoin European auto lobby ACEA, which it had left at the beginning of 2023, in a move that might flag a more cautious stance for the automaker on its electrification plans.

A U.S. automotive start up is in advanced talks to take over Stellantis' closed-down factory in Grugliasco, Italy, daily La Repubblica said on Sunday, adding that a deal could be sealed by March.

UNIEURO

Fnac Dary and Holdco said on Friday they reached 95.45% of the Italian electronics distributor group share capital.

JUVENTUS

The Turin giants salvaged a 2-2 draw at Bologna on Saturday, neutralising a two-goal lead by the hosts, but manager Thiago Motta said he was not satisfied by the performance.

LAZIO

Lazio denied Napoli the chance to return to the top of the Serie A standings with a 1-0 away win on Sunday, their second victory this week over Napoli, following their midweek Coppa Italia success.

ASKOLL EVA

Starts capital increase; ends on Dec. 23.

G RENT

Starts capital increase; ends on Dec. 23.

LANDI RENZO

Ends capital increase.

MONRIF

Monti Riffeser Srl reopens full voluntary takeover bid on Monrif shares; ends on Dec. 13.

VISIBILIA EDITORE

Ends capital increase.

DIARY

Economy Minister Giancarlo Giorgetti attends Eurogroup meeting in Brussels.

Rome, Cabinet meeting chaired by Prime Minister Giorgia Meloni (1600 GMT).

Rome, Fincantieri presents Fincantieri Foundation and its new mission with Fincantieri Chairman Biagio Mazzotta, Fincantieri CEO Pierroberto Folgiero, Fincantieri Foundation Presidente Fausto Recchia (1030 GMT).

Milan, former ECB president and Italian premier Mario Draghi receives think tank ISPI's annual award (1730 GMT).

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

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Stories on Italy......

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

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