UPDATE 2-Monte Paschi branch sale worries hit shares

* Q3 net 69.3 mln euros, beats I/B/E/S poll

* Tier 1 7.6 pct at end-September with gov't help

* Shr Net interest income at 913.3 mln euros

(Adds company comments, share price)

By Ian Simpson

MILAN, Nov 13 (Reuters) - Shares in Italy's Banca dei Monte di Paschi SpA (BMPS.MI) fell on Friday on market uncertainty over the planned sale of branches designed to help shore up its weak capital ratios.

Monte dei Paschi, the world's oldest bank, posted net income of 69.3 million euros ($103.1 million), down 42 percent from the year before. Net profit was ahead of a Thomson Reuters I/B/E/S average forecast of 37.5 million euros.

General Manager Antonio Vigni said Monte dei Paschi, Italy's fourth-biggest bank by market value, was still in talks with potential buyers about sale of 135 branches as part of an antitrust ruling.

"We are still doing our due diligence with a number of counterparties, we confirm that this process is still going on. We expect to have positive news by year's end," he told a conference call with analysts.