First UniCredit-Credit Agricole talks fail to make progress, paper says

MILAN (Reuters) - UniCredit and Credit Agricole held a first meeting over Italy's Banco BPM after the latter invested in rival Monte dei Paschi di Siena but the talks proved fruitless, la Repubblica daily reported.

In an unsourced report on Wednesday, la Repubblica said senior managers from the two banks met after the Monte dei Paschi (MPS) stake placement by the Italian government, adding the meeting did not involve the two CEOs Andrea Orcel and Philippe Brassac.

UniCredit approached Credit Agricole, the paper said, because Orcel suspected the French bank to have built a further stake in derivatives in Banco BPM.

A bigger stake would allow Credit Agricole to keep its weight as a shareholder in a combined BPM-MPS entity, a merger project which Italy's government has been trying to encourage.

Credit Agricole is the main investor in BPM which has now become a takeover target for UniCredit.

The meeting led nowhere with UniCredit rebuffing any French proposals, the paper said. A representative for Credit Agricole Italia said the bank did not comment on press rumours. UniCredit also declined to comment.

The paper said UniCredit was seeking a second meeting that could take place in January.

(Reporting by Valentina Za; Editing by Ros Russell)