Adds details and background throughout

By Giuseppe Fonte

ROME, May 21 (Reuters) - Euronext ENX.PA CEO Stephane Boujnah ruled out on Thursday the possibility of a merger with Deutsche Boerse BBGn.DE in the near future, even though such a deal "would make sense".

"We have already sought a merger with Deutsche Boerse three times, I don't think there will be a merger in the near future," Boujnah told an Italian parliamentary hearing.

Italian ruling lawmakers summoned Boujnah over Euronext's plans for the Milan bourse, which the Amsterdam-registered group acquired from London Stock Exchange Group LSEG.L in 2021.

The prospect of a tie-up between Euronext and Deutsche Boerse has fuelled concerns in Italian government circles that Euronext could ​scale back its Italian operations and favour listings in other ​markets.

Asked if a merger with the German stock exchange would cause Italian shareholders to lose influence in Euronext, Boujnah said such a deal would dilute the stakes of all leading stakeholders, including Italian state lender Cassa Depositi e Prestiti (CDP) and Intesa Sanpaolo ISP.MI.

CDP holds an 8.1% stake in Euronext, the same as France's Caisse des Depots, while Italy's biggest bank Intesa San Paolo owns 1.55%.

"Growth leads to dilution. If you want to remain fully in control, you need to stay within your own boundaries," he said.

Treasury-controlled CDP has opened a legal challenge to Euronext over the powers to appoint the Milan bourse's CEO.

The clash is part of CDP's broader attempt to gain greater influence ⁠within Euronext, a push that Reuters previously reported aims to ensure the appointment of an Italian executive to ​lead the pan-European stock exchange at a later stage.

"I don't understand how we've gotten to this point over something that's just a misunderstanding," Boujnah said, reassuring Italian lawmakers that Euronext has no intention of downgrading Borsa Italiana's business.

Signalling that the dispute over the head of Borsa Italiana is far from being settled, a source familiar with CDP's thinking of the matter said the state lender was pressing ahead with plans to lodge a new legal case in Amsterdam, after a court rejected a first attempt.