Intesa shareholder Compagnia di San Paolo backs bank's bid for MPS, daily reports

MILANO, June 11 (Reuters) - Intesa Sanpaolo shareholder Compagnia di San Paolo backs the bank's bid for Banca Monte dei Paschi di Siena (MPS), the chairman of the banking foundation, Marco Gilli, told daily La Stampa on Thursday.

Intesa, Italy's biggest banking group, said on Monday it had made a €30.6 billion ($35 billion) unsolicited cash-and-share offer to buy smaller rival MPS in what would be the country's largest banking deal.

Gilli said the foundation, which holds about 6.6% of Intesa, supported the deal as it would create value for shareholders and strengthen Italy's banking system.

If the deal goes ahead, its stake would be diluted to 5.1%, the report added.

Separately, Gilli said he did not rule out increasing the 0.1% stake Compagnia di San Paolo holds in Italy's biggest insurer Generali.

(Reporting by Claudia Cristoferi, editing by Giulia Segreti)