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 IT/DIA.

POLITICS

Italy's upper house of parliament on Wednesday gave final approval, amid opposition protests, to a wide-ranging security decree that targets public protests, pickpockets and squatters, and outlaws so-called "legal" cannabis.

ECONOMY

ISTAT releases April retail sales data (0800 GMT).

COMPANIES

PIRELLI PIRC.MI

The Italian government is resisting calls from Pirelli's executive vice-chairman Marco Tronchetti Provera to tighten curbs imposed on the tyremaker's Chinese investor Sinochem 600500.SS, sources said on Wednesday.

Tronchetti Provera's Camfin holding company has raised its stake in Pirelli to 27.41% from 27.3%, a filing showed on Wednesday.

UNICREDIT CRDI.MI, BANCO BPM BAMI.MI

The European Commission has authorised UniCredit's bid for Banco BPM under the EU's foreign subsidies regulation, UniCredit said on Wednesday.

UniCredit has sought a court annulment of the letter it received on May 30 from the Italian Treasury that provided clarifications on the government-set conditions for the BPM bid, Banco BPM CEO Giuseppe Castagna said on Wednesday. The move has irked Italy's Treasury which stands by the conditions set for the bid, a person with knowledge of the matter said.

UniCredit had said earlier on Wednesday it had decided to drop the request of interim measures from the court following the May 30 letter in order to ease "continued constructive" talks with the Treasury.

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

Italy's fourth-largest bank said on Wednesday that market regulator Consob had approved the investor document for its takeover bid on smaller peer Popolare di Sondrio, with the acceptance period running from June 16 to July 11.

Morningstar DBRS has upgraded the long term rating to BBB (high) from BBB, and lowered the trend to 'stable' from 'positive', the bank said on Wednesday. The ratings agency also gave a positive assessment on the Popolare di Sondrio bid.

STMICROELECTRONICS STMMI.MI

The Franco-Italian chipmaker expects 5,000 staff to leave in the next three years, including 2,800 through job cuts announced earlier this year and the rest due to attrition, its chief executive said on Wednesday.

Italy Industry Minister Adolfo Urso said on Wednesday that reports that Italy and France are looking at the possible break up of the company's Italian and French operations are "totally unfounded".

ACEA ACE.MI, ENI ENI.MI

The regional utility said on Wednesday it had received a binding offer from Eni's renewable and retail unit Plenitude to buy ACEA unit that owns more than 1 million of electricity and gas customers.

STELLANTIS STLAM.MI

More than 500 jobs are at risk in Italy after automaker Stellantis changed oil supplier from a local brand owned by Malaysia's Petronas to France's Total, the Uilm trade union said on Wednesday.

DIARY

Rome, 6th edition event "Phygital sustainability expo; the European general meeting on the culture of sustainability" starts; ends on June 6. On Thursday expected attendees include EU Affairs Minister Tommaso Foti, Industry Minister Adolfo Urso, EU Climate Commissioner Wopke Hoektra, Environment and Energy Minister Gilberto Pichetto Fratin.

Rome, Economy Minister Giancarlo Giorgetti attends ceremony for the 211th anniversary of the foundation of the Carabinieri police corps (1715 GMT).

Rome, Industry Minister Adolfo Urso attends meeting on 'Electrolux' (1300 GMT).

Rome, Industry Minister Adolfo Urso attends 2nd edition event "The Day of Truth" (1500 GMT).

Rome, as part of the European tour ENI ENI.MI unit Enilive presents "The road to decarbonisation of mobility passes from here" (0730 GMT); expected attendees include Environment and Energy Minister Gilberto Pichetto Fratin, Enilive Chairman Marco Petracchini, Enilive CEO Stefano Ballista.

Brescia, 'High-Level Economic Dialogue' (Joint Committee for Economic Cooperation) and 'Italy-India Business Forum' chaired by Foreign Minister Antonio Tajani and Indian Trade and Industry Minister Piyush Goyal (0730 GMT); followed by news conference with Tajani and Goyal (1300 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/