Royal Bank of Scotland (RBoS) Group played down weekend press reports of a possible bid for German bank HVB Group.
German weekly magazine Focusreported that RBoS plans to table an offer of up to €21.50 for HVB, trumping Unicredito's all-share bid pitched at €20.50 per share.
The magazine said RBoS was planning to make its move just before the Unicredito/HVB tie-up is finalised.
"I would refer people to what [RBoS chief executive] Fred Goodwin has repeatedly said, which is that RBoS is more likely to be a spectator than a participant in European acquisitions," a spokeswoman for the bank said.
Mr Goodwin reiterated this stance two weeks ago, when the bank issued a trading update ahead of its first-half results.
The Royal Bank of Scotland Group owns Ulster Bank and First Active.