Italian Stocks Decline; Indesit, Intesa Sanpoalo, STMicro, UniCredit Move

Italy’s FTSE MIB Index dropped 738.62, or 3.8 percent, to 18,734.73 in Milan. The following stocks were among the most active on the Italian market today.

Banca Monte dei Paschi di Siena SpA (BMPS IM) retreated 4.7 percent to 84 cents as bank stocks declined across Europe. “Bank stocks are still affected by too many question marks,” said Alberto Magnani, a fund manager at Abbacus Sim SpA in Genoa, Italy. “Visibility on earnings is too low and the market remains nervous.” Intesa Sanpaolo SpA (ISP IM) dropped 6 percent to 1.99 euros. UniCredit SpA (UCG IM) lost 5.7 percent to 1.56 euros. Unione di Banche Italiane ScpA (UBI IM) declined 5.7 percent to 6.76 euros.

Indesit Company SpA (IND IM) gained 14.5 cents, or 1.6 percent, to 9.30 euros, a fourth gain this week. Cheuvreux reiterated an “outperform” rating on Italy’s biggest home- appliance maker, saying in a note that “Russia showed good recovery signals in April and May.” The brokerage also noted that “acquisitions are easily financially sustainable,” and “Indesit could be interested in a high-end brand or market shares.” The company attended Cheuvreux’s small-caps conference.

Pirelli & C. Real Estate SpA (PRS IM) fell 0.9 percent to 34.65 cents, after gaining as much as 8.7 percent. Morgan Stanley, the world’s largest brokerage, and investors including Carlo Puri Negri and Matteo Arpe are considering a purchase of the real estate company, according to Italian magazine Il Mondo.

Morgan Stanley may invest as much as 200 million euros ($244 million) in an offer, while a group of investors, led by Banca Profilo SpA Chairman Arpe and former Pirelli RE executive Puri Negri, may contribute another 200 million euros, the magazine reported, without saying where it got the information.

A spokesman for Sator SpA and Profilo denied the report.

“We believe that Pirelli & C. SpA (PC IM), which controls 58 percent of Pirelli RE, would prefer the tender to be launched after the spinoff to give fresh money to Camfin SpA,” Centrobanca said in a note. Pirelli shares 0.8 percent to 45.05 cents.

STMicroelectronics NV (STM IM) rose 0.5 percent to 6.61 euros, a third straight gain. UBS AG upgraded Europe’s largest chipmaker to “neutral” from “sell.” The brokerage said that “while structural concerns remain, STMicro is a strong beneficiary of the recent currency moves.”

STMicro also had its recommendation lifted to “buy” from “accumulate” at Banca Akros, while Piper Jaffray increased its price estimate to 7.6 euros from 7 euros.

To contact the reporter on this story: Francesca Cinelli in Milan at fcinelli@bloomberg.net.

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