UPDATE 1-Banco Popolare reopens Italease bid period

* Offer price unchanged at 1.5 euros

* Banco Popolare shares down 5.3 pct

(Adds details, shares, background)

MILAN, July 2 (Reuters) - Italy's Banco Popolare (BAPO.MI) said on Thursday it would reopen the bid period for its buyout offer on its affiliate Banca Italease (BIL.MI) after it failed to achieve the 90 percent limit set in the offer.

The cooperative bank said in a statement the new bid period would run from July 9 to July 15 and that the offer would remain at the previous bid price of 1.5 euros per share.

Earlier on Thursday, an analyst said an increase in the buyout price for Italease could not be ruled out after Banco Popolare shares fell on the Milan stock market.

At the end of the original bid period on July 1, Banco Popolare held an overall 84.447 percent of Italease.

Banco Popolare is launching its offer on Banca Italease with a view to delisting the bank.

Popolare has been burdened for years by its stake in Banca Italease, which posted massive losses on derivatives in 2007.

On Thursday, Banco Popolare shares fell 5.32 percent at 5.16 euros, while the DJ Stoxx of banks .SX7P fell 2.56 percent. (Reporting by Stephen Jewkes; Editing by Jon Loades-Carter)