MILAN (Reuters) -UniCredit Chief Executive Andrea Orcel ruled out on Tuesday the bank could make a play for Assicurazioni Generali, Italy's biggest insurer in which it has recently acquired 6.7%.

The stake, which UniCredit has called a financial investment, the same description it has used for its 28% Commerzbank holding, has raised speculation about Generali's future as the insurer cuts ties with its main shareholder.

Generali's main investor, Mediobanca, plans to dispose of its 13% stake under a scheme to fend off suitor Monte dei Paschi di Siena.

Mediobanca would use its Generali shares as payment to buy the insurer's private banking unit Banca Generali.

On Monday, Intesa CEO Carlo Messina said he would ring Orcel to dissuade him from a Generali acquisition were UniCredit to make a move for the insurer, opening up a third M&A front.

UniCredit has launched a buyout offer for smaller rival Banco BPM.

Speaking at the same FABI union conference a day after Messina, Orcel was asked if there were any risks the Intesa CEO would have to make that phone call.

"Absolutely not," Orcel said.

Orcel also played down any potential interest for Banca Generali, saying such networks of financial advisers traded at valuation multiples much higher than banks and a combination with a branch franchise would offer little scope for cost savings.

Orcel said distribution was a key element of wealth management and it made sense for a bank to hold onto any distribution capacity, but he added that Generali may have different strategies in parting ways with Banca Generali.

Asked if UniCredit, as an investor in Generali, supported the Banca Generali deal, Orcel said the decision would be taken by the insurer's board and not be put to its shareholders.

However, some other Generali shareholders have raised doubts about whether the decision can be left solely to the board, without a shareholder vote.

(Reporting by Valentina Za; editing by David Evans)