* Euro zone blue chip index down 0.1 pct
* Banks Intesa, UniCredit weigh on Milan index
* Lanxess boosted as Warren Buffet buys stake
(Adds details, updates prices)
By Danilo Masoni
MILAN, May 29 European shares inched lower in
quiet trading on Monday with Italian stocks left behind as
worries over possible early elections weighed, hitting banks.
Activity was reduced as holidays in major markets such
Britain and the United States kept investors away.
The index of the top 50 euro zone stocks slipped
0.1 percent, while Italian blue chips fell 1.1 percent,
on track to end at their lowest close in over three weeks, while
Germany's DAX added 0.1 percent.
Weekend reports that Italy's main parties could converge on
a proportional electoral law pointed to growing chances of an
election in the autumn, possibly leading to no clear majority.
In an interview on Sunday, former Prime Minister Matteo
Renzi said an accord on a proportional voting system was
possible though it could result in a coalition government that
may have trouble holding together.
"The risk of early elections has suddenly increased to 60
percent," LC Macro Advisers founder Lorenzo Codogno said. "A
hung parliament is thus the most likely outcome".
Italian banks, already hit by worries
surrounding the rescue of two ailing regional lenders Popolare
di Vicenza and Veneto Banca lenders, fell
1.8 percent, dragging euro zone banks down 0.4 percent.
Among Europe's heavyweight lenders, Italy's Intesa Sanpaolo
and UniCredit both fell more than 1.7
percent, while Deutsche Bank slipped 0.2 percent and
Banco Santander added 0.1 percent.
Spanish-listed shares of International Airlines Group
, the parent company of British Airways, fell 2.7
percent. British Airways flights suffered massive disruptions
over the weekend with over 1,000 flights cancelled after a
computer system failure.
Lanxess rose more than 3 percent, leading gainers
on the STOXX after news that billionaire Warren Buffett had
acquired a 3 percent stake in the German chemicals maker.
(Reporting by Danilo Masoni and Vikram Subhedar)