(Adds comments on merger with Banco Popolare)
MILAN (Thomson Financial) - UBI Banca is interested in acquiring branches and in merging with other co-operative banks, dailies Il Sole 24 Ore and La Repubblica said on Sunday, citing CEO Giampiero Auletta Armenise.
Auletta Armenise said UBI will look at the branches that Banca Monte dei Paschi di Siena SpA must sell to ease competition concerns, Il Sole reported.
In La Repubblica, Auletta Armenise was quoted as saying that 'in theory', a merger with Banco Popolare would make sense but would also be a complex operation.
However, he said that since talk of a potential merger beteen the two banks was 'categorically denied' at the end of 2007, there have been no developments.
He also said first-quarter net profit rose slightly compared with a year earlier. danilo.masoni@thomsonreuters.com dm/dm/wj COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.