Intesa not eyeing MPS, other Italian banks: report

MILAN (Reuters) - Intesa Sanpaolo (ISP.MI), Italy's biggest retail bank, is not eyeing Banca Monte dei Paschi di Siena (MPS) (BMPS.MI) or other Italian banks, its chief executive said in an interview to an Italian newspaper.

MPS needs to find 3.3 billion euros ($4.4 billion) by the end of June to meet tougher capital requirements and it could become a takeover target, as its top shareholder struggles to mend its finances.

Sources close to the matter have said the foundation controlling 46 percent of MPS, Italy's No. 3 lender, may have to sell a 10-15 percent stake in the bank.

"We don't have plans to further grow in Italy," Intesa Chief Executive Enrico Cucchiani told Corriere della Sera, when asked about whether Intesa was interested in MPS.

In the interview published on Sunday, Cucchiani said Intesa would use cheap three-year European Central Bank funds partly to buy Italian government bonds.

"In our case the ECB funds will be used to provide lending and, in part, to support the public debt, which has important tranches coming due," he said.

Italian banks tapped about 116 billion euros of the 489 billion euro loans the ECB offered in December and Italy's Prime Minister Mario Monti has said his country's banks should use the funds to buy more government bonds.

The ECB will hold a similar loan offering at the end of February. ($1 = 0.7582 euros)

(Reporting By Danilo Masoni; Editing by Erica Billingham)