MILAN, Dec 14 (Reuters) - Italy"s depositor protection fund FITD is stepping up efforts to find a buyer for its 80% stake in Banca Carige (CRGI.MI), sources said on Tuesday, sending the lender"s shares up more than 8%. FITD, funded by contributions from Italian banks, is looking for potential suitors for Carige, which it bailed out in 2019. The fund holds a pre-scheduled meeting on Thursday when it will discuss Carige and brief stakeholders on ongoing talks with potential bidders, two sources close to the matter said. Carige"s owner is in contact with a "foreign investment fund and two Italian banking groups," one of the sources said without elaborating. The source ruled out any deal before the end of the year but said "theoretically, exclusive negotiations could be initiated". He said the dossier on a potential tie-up was likely to be discussed in a Carige board meeting expected on Wednesday. FITD, which cannot be a long-term investor in a lender, opened up Carige’s books to potential suitors in June. The search for a partner has been difficult and the loss-making lender is in the middle of a turnaround. In July, it said it needed a further 400 million euros ($452 million) in capital to help it make a net profit in 2023. Italian newspaper Il Sole 24 Ore said on Tuesday that FITD was in talks with Credit Agricole and BPER Banca (EMII.MI) to sell control of the regional lender. Carige and BPER were not immediately available for a comment. Credit Agricole declined to comment. Carige share performance vs Italy banking index Carige share performance vs Italy banking index Credit Agricole"s expansion strategy in Italy - its biggest market outside France - is to pursue bolt-on deals focusing on regional lenders. In April, it bought Creval in a $1 billion takeover bid. Analyst say tax breaks introduced by the government have helped drive consolidation in the Italian market, where more tie-ups are expected to follow Intesa Sanpaolo"s (ISP.MI) takeover of UBI, the healthiest second-tier player. A draft of next year"s budget showed Rome planned to extend the current incentives by six months to mid-2022 but would introduce a new 500 million euro ceiling for the beneficiary. That amended level would still suit a Carige deal. read more ($1 = 0.8850 euros)