Spanish stocks - Factors to watch on Monday

The following Spanish stocks may be affected by newspaper reports and other factors on Monday. Reuters has not verified the newspaper reports, and cannot vouch for their accuracy:

REPSOL

Ecuador wants 25 percent of gross income from the country's key oil sector to go to the state, according to a law proposede by the government aimed at increasing revenue from natural resources.

Spain's Repsol, Brazil's Petrobras, Chinese consortium Andes Petroleum and Italy's Eni are among the biggest oil investors in the Andean country.

Bank of America Merrill raised its recommendation for Repsol shares to 'buy' from 'neutral' on Monday.

SABADELL, GUIPUZCOANO

Spain's fourth largest retail bank Sabadell's board approved a merger with Banco Guipuzcoano on Friday through a share and convertible bond swap, valuing its smaller rival at about 730 million euros.

TELEFONICA

UK retailer Next is in talks to sell its call centre unit Ventura for more than 50 million pounds to Spanish telecoms group Telefonica, the Sunday Times said.