KUWAIT (Reuters) - The $200 billion Kuwait Investment Authority had no immediate comment on Monday on a report it may buy into Merrill Lynch & Co Inc <MER.N> and Citigroup Inc <C.N>, two U.S. banks hit by credit market losses.

A KIA public relations official referred calls to Managing Director Bader al-Sa'ad, who could not be reached in his office or on his mobile.

The Financial Times reported on Sunday Merrill Lynch was seeking about $4 billion in a second capital raising and the KIA is expected to be a significant investor in the new deal, citing people familiar with the matter.

A deal could be announced as soon as midweek, the paper said, adding that other investors could come from Europe.

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The paper also reported on Saturday Citigroup, the largest U.S. bank by assets, was putting the final touches to a second big fundraising, seeking up to $14 billion from Chinese, Kuwaiti and other investors.

The Kuwait Investment Authority, which manages the surplus revenue of the Middle East's fourth largest oil exporter, had at least $213 billion in assets at the end of March last year, according to official data.