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* Eni sells Galp shares at 12.22 euros each
* Eni has no more free Galp shares to sell
* Placement was 5 times covered - bank source (Recasts, adds banking source, shares)
MILAN, May 31 (Reuters) - Italian oil and gas group Eni has raised 677.6 million euros ($885 million) from the sale of a 6.7 percent stake in Portuguese energy company Galp Energia as part of its strategy of selling off interests which it cannot control.
Earlier in May it sold a stake in Italian gas transportation group Snam for 1.45 billion euros.
In a statement on Friday, Eni said it had sold about 55.5 million Galp shares to institutional investors at 12.22 euros each, a discount of 1.8 percent to Thursday's closing price.
"It took less than two hours to get it away with demand about five times the offer with a very low discount," a banker close to the operation said, adding a lot of the demand had come from hedge and long-only funds.
Galp shares were up 2.5 percent at 12.755 euros in Lisbon by 0837 GMT, when Eni's share price was down 0.3 percent at 17.78 euros.
In November Eni raised 1.4 billion euros from the sale of shares and convertible bonds in Galp.
The latest sale leaves Eni with a stake of 16.34 percent in the Portuguese group but the shares are locked up to cover the convertible bonds and options that can be exercised by major Galp shareholder Amorim Energia.
Last year Eni's chief executive Paolo Scaroni said he expected the sale of Eni's then 33.34 percent holding in Galp to fetch around 3.5 billion euros.
Eni originally paid 900 million euros for its stake. ($1=0.7660 euros) (Reporting By Stephen Jewkes; Editing by Greg Mahlich)