MILAN, Sept 16 (Reuters) - 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 (*).

IT HOLDING

Due diligence on PA Investments, which controls the company, is underway and the picture should be clear by mid-October on a possible offer for a stake by Billy Ngok, chairman of Hembly International Holdings , a source close the talks said.

* DAMIANI

The jeweller said in a statement on Tuesday it had bought Rocco SpA, a high-end jewellery and watch retail chain, for 7 million euros from a company belonging to the Damiani family, in a move that strengthens its retail segment.

Damiani holds a press conference.