UPDATE 1-Polish builder eyes merger to fix money woes - paper

* PBG CEO mulls merger between "several vital entities"

* Says state agency ARP should be involved

* No comment on whether merger could be with rival Polimex

(Adds comments, background)

WARSAW, Oct 9 (Reuters) - Troubled Polish builder PBG

believes mergers within the construction sector could be a way of fixing its financial problems, a newspaper reported on Tuesday.

PBG has been in bankruptcy protection since a series of contracts linked to the Euro 2012 soccer tournament went sour, and the Dziennik Gazeta Prawna quoted its chief executive, Wieslaw Rozacki, as saying a merger could be a solution.

The merger being considered would be between "several vital entities for the Polish economy," the newspaper quoted Rozacki as saying.

Rozacki added that state development agency ARP should be involved in the project, but declined to comment on whether it would also include PBG's beleaguered rival Polimex , in which ARP is to buy a stake of up to 33 percent.

ARP declined to comment, Polimex was not available, while a source close to PBG said the merger option was not an immediate prospect.

"PBG is in constant talks with ARP over some form of aid," the source said on a condition of anonymity.

"Polimex does not currently have a big shareholder and if ARP became one, a tie-up option with PBG could be in the works, but this is further down the line."

Earlier this year, sources told Reuters that PBG and Polimex, which run similar construction portfolios, might eventually merge to avoid bankruptcy.

The two are the largest of Polish construction groups to run into trouble after cut-throat bidding in Poland's motorway-building programme ahead of the Euro 2012 soccer tournament which Poland co-hosted, left builders deeply in debt.

PBG has been in bankruptcy protection since June, while Polimex is struggling to keep afloat. It plans to spin off non-core units and secure a debt restructuring deal, as well as shareholder acceptance for a share issue.

Both companies opened the Tuesday session on the Warsaw bourse with gains of around 2 percent, but PBG's shares are still almost 91 percent down this year to date, with Polimex stock down by 54 percent.

(Reporting by Adrian Krajewski; Additional reporting by Agnieszka Barteczko; Editing by Mark Potter)

((adrian.krajewski@thomsonreuters.com)(+48 22 653 97 09)(Reuters Messaging: adrian.krajewski.thomsonreuters.com@reuters.net))