The following factors could affect Italian markets on Tuesday.

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.

ECONOMY

ISTAT releases December foreign trade data (0900 GMT).

COMPANIES

(*) ERG ERG.MI

The Italian energy group is considering mergers or other business initiatives which may involve utility A2A A2.MI, Swiss power company Axpo and several investment firms, daily Corriere della Sera reported on Tuesday, citing unnamed sources. The newspaper said a merger with an industrial partner was the most likely option.

(*) EDISON EDNn.MI

France's EDF, which controls the Italian energy firm, is likely to decide this week whether to list Edison on the Milan bourse through an IPO or merge it with an investment fund, financial daily MF reported on Tuesday, citing unnamed sources.

NEXI NEXII.MI

Private equity firms Advent and Bain Capital have exited a governance pact after cutting their stakes in the payments group. The pact, now comprising Italian state lender CDP and investment firm Hellman&Friedman, represents 41.37% of Nexi's capital, down from 55.27% last year, the company said on Monday.

BFF BFF.MI

Shares in the Italian specialist lender fell 12% on Monday after Reuters reported that Milan prosecutors had opened an investigation into alleged false accounting at the bank, citing two sources with direct knowledge of the matter. BFF confirmed the probe, which it said was launched by Milan prosecutors at the end of 2023.

FINCANTIERI FCT.MI

The shipbuilder on Monday said it had secured an order for three new cruise ships from Norwegian cruise line.

(*) PRYSMIAN PRY.MI

Berenberg on Tuesday cut its rating on the Italian cable maker to 'hold' from 'buy', and raised the target price to 92 euros from 75.

RECORDATI RECI.MI

Releases preliminary FY results.

EDISON EDNn.MI

Releases FY results.

BORGOSESIA BRGI.MI

Investment vehicle Alba said on Monday it planned to launch a 34 million euro voluntary tender offer for all outstanding shares in Italian alternative investment firm Borgosesia, offering 0.71 euros per share, with the aim of taking it private.

M&A

Exor EXOR.AS, the Agnelli family's investment vehicle, and the founder of Lifenet Healthcare have agreed to sell the Italian private clinics and diagnostics group to insurer Reale Mutua, the companies said on Monday.

DIARY

Economy Minister Giancarlo Giorgetti attends ECOFIN meeting in Brussels.

((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/