Monte dei Paschi, Banco BPM working on deal with cash component, Bloomberg News reports

July 27 (Reuters) - Banca Monte dei Paschi di Siena and Banco BPM advisers are exploring a merger that would mix cash and shares as a possible alternative to Intesa Sanpaolo's offer for Monte Paschi, Bloomberg News reported on Monday.

The advisers are working on a structure that would leave shareholders with ownership broadly reflecting the two banks’ current valuations, the report said, citing people familiar with the matter.

Banca Monte dei Paschi di Siena and Banco BPM declined to comment on the report. Reuters could not immediately verify the report.

($1 = 0.8788 euros)

(Reporting by Dagmarah MackosEditing by Tomasz Janowski)