MILAN, May 11 (Reuters) - Mediobanca’s Chief Executive Alberto Nagel on Tuesday dismissed the idea of a potential merger between the Milanese investment bank and bigger rival UniCredit, saying it made little sense. The idea of a combination between Mediobanca and UniCredit has been floated in financial circles following the appointment last month of veteran dealmaker Andrea Orcel as CEO of Italy’s No.2 bank. Orcel last week said he was open to considering potential mergers and acquisitions to foster growth at UniCredit as he works to boost profits and capital returns. Analysts have said an acquisition of Mediobanca would provide UniCredit with in-house wealth management and consumer finance operations while strengthening its corporate and investment banking business. But Nagel said a tie-up would not be very beneficial for either player. “In finance one can dream up all sorts of ideas, but from an industrial standpoint it’s a combination that would be of little use for either company,” he told a media call after Mediobanca reported results for the January-March period. “To combine a specialised investment bank with a universal lender is a transaction that makes little sense and yields few benefits for either bank,” he said. Nagel said he had spoken with Orcel over the phone but was yet to meet him, though he expected that would happen soon. “I think it won’t be long before the conditions [for a meeting] are in place. I’m happy someone with his background can work for an Italian bank, it’s a way of repatriating brains and talents,” he said. Three decades in investment banking, first at Merrill Lynch and then UBS, have made Orcel one of Europe’s best known and highest-paid bankers. (Reporting by Gianluca Semeraro, writing by Valentina Za; editing by Agnieszka Flak) Our Standards: The Thomson Reuters Trust Principles.