BUZZ-Vedanta: boosted by media spec of merger with Cairn India unit

Reuters - UK Focus

(Corrects to clarify merger speculation is about unit Vedanta Ltd)

** Vedanta Resources (LSE: VED.L - news) bouncing clear of near 2-mth lows in robust volume amid media reports of a potential merger between units Vedanta Ltd and Cairn India (CIL)

** Vedanta up 5 pct, top FTSE 250 riser & on course for biggest one-day rise since mid April, volume half the 90-day daily avg after 1h 20 mins of trade; Cairn India down 4.3 pct

** Media reports say Vedanta Ltd is close to announcing a merger with CIL, an oil & gas explorer, to get access to CIL's cash and help reduce debt (Link: http://bit.ly/1QkzY79)

** Vedanta had standalone net debt of 367.96 bln rupees ($5.76 bln) as of March 31

** Vedanta on Tuesday comments on the recent press speculation saying "should a transaction with CIL proceed, it could potentially be considered a reverse takeover

($1 = 63.8950 Indian rupees) (RM (LSE: RM.L - news) : aastha.agnihotri.thomsonreuters.com@reuters.net)