MILAN (Reuters) - Italy's Intesa Sanpaolo <ISP.MI> could launch a 12 billion euro ($13 billion) capital increase reserved to Assicurazioni Generali's <GASI.MI> shareholders as part of a potential takeover on the insurer, Il Messaggero reported.
Intesa Sanpaolo confirmed on Tuesday it was examining a possible tie-up with Generali, in its first comment since reports emerged at the weekend that it was interested in building a stake in Italy's biggest insurer.
Among the options being reviewed, the most probable is a cash and share offer by Intesa on 60 percent of Generali, the paper said, adding that the bid would include a cash portion of 3 billion euros and a reserved cash call for around 12 billion euros.
The daily newspaper added that UBS would advise Intesa on the operation, although the mandate had yet to be formalized.
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Intesa was not immediately available for comment, while UBS had no immediate comment.
(Reporting by Francesca Landini in Milan and Michael Shields in Zurich, editing by Louise Heavens)