Italian insurer Unipol has revised its plan to take over insurance company Fondiaria-SAI after the market regulator indicated its initial proposal would hurt minority shareholders in Fondiaria, newspapers reported on Sunday.

Earlier this month, Unipol agreed a four-way deal to rescue debt-laden Fondiaria, create one of the country's biggest insurers and end the once-powerful Ligresti family's control of the group.

Fondiaria-SAI, Italy's biggest vehicle insurer, is 35.8 percent owned by Premafin which, in turn, is controlled by the Ligresti family. Fondiaria-SAI controls insurance company Milano Assicurazioni .

Under the new plan, according to newspaper reports, Unipol will take a majority stake in Fondiaria's parent company Premafin
by injecting up to 350 million euros (292.08 million pounds) into Premafin via a capital increase -- instead of buying the Ligresti family's 51 percent stake in Premafin at a hefty premium.

The newspapers did not reveal their sources for the new plan.

(Market regulator) Consob has imposed a change in the integration of Fondiaria and Unipol, Italy's leading financial newspaper Il Sole 24 Ore said.

It was not immediately possible to confirm the reports. Unipol, Premafin and Fondiaria have all scheduled board meetings on Sunday.

According to the newspaper reports the Ligresti family will not now get a 77 million-euro control premium and will instead keep a minority stake in Premafin of between 5 and 10 percent.

The cooperative-owned Unipol would then participate in a capital increase at Fondiaria now seen at about 1 billion euros, newspapers said.

Separately, a source close to the matter told Reuters that Fondiaria's capital increase could be more than the 750 million euros it had originally planned.

The four-way merger between Unipol, Premafin, Fondiaria-SAI and Milano Assicurazioni is expected to be completed by mid-year, Corriere della Sera said.

The planned tie-up would create a new giant in the Italian insurance market, currently led by Assicurazioni Generali . An enlarged Unipol would control some 32 percent of the non-life segment and 10 percent of the life insurance sector, Mediobanca analysts have said.

(Reporting by Svetlana Kovalyova and Stephen Jewkes; Editing by Sophie Walker)