Italy's Sanpaolo bank is reportedly considering taking a 2% stake in Natixis, the agreed merger of French banks Caisse d'Epargne and Banque Populaire. Its investment could be worth up to €500m ($638m).

Sanpaolo, which is represented on Caisse d'Epargne's board, informed other board members that Sanpaolo could spin off two of the French bank's units and reinvest the money in Natixis, Agence France-Presse reports, citing unnamed sources.