STOCKS NEWS EUROPE-Generali up on index weightings

Shares in Italy's largest insurer Assicurazioni Generali GASI.MI are up more than 3 percent ahead of its merger with its unit Alleanza Assicurazioni ALZI.MI, effective on Thursday, and an increased Generali weighting in indexes.

"In the indexes which include only Generali -- Eurostoxx50 .STOXX50E and STOXX50 .STOXX50 -- we expect Generali's weight to increase by 10 percent," a broker with an international firm says.

Another broker from the same firm says funds will have to buy volume equivalent to one day’s normal trading in Generali to make up the extra weight in their portfolio and this buying explains the rise on Tuesday.

Indexes such as Milan's blue chip FTSE MIB .FTMIB are seen litle-impacted because Generali and Alleanza are both in the index and Alleanza shareholders will get Generali shares.

Under the merger announced earlier this year Alleanza shareholders will each get 0.33 Generali shares.

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