MEDIA-Dong Energy: oil unit could be spun off via merger - Borsen

** Dong Energy (LSE: 0RHE.L - news) , which is seeking to divest its oil and gas business, may end up merging the unit with another company, Danish financial daily Borsen reported on Wednesday, citing the energy group's chief executive

** Dong Energy said in November it would quit the oil and gas business to focus solely on offshore wind power and a sale of the unit has been considered the most likely option

** "We would of course prefer to get cash in the hand, but we are open to another solution if we can see a safe way to money. It would typically be in the form of shares in the continuing company," CEO Henrik Poulsen told Borsen

** "I can't comment which companies we are discussing these matters with, except that it is within our considerations," he added

** DONG has completed its initial dialogue and has entered into actual negotiations, Borsen reported

** On Tuesday, Reuters reported that Cairn Energy (LSE: CNE.L - news) emerged as front runner for DONG Energy's oil, gas assets

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Note (Stockholm: NOTE.ST - news) : Reuters has not verified this story and does not vouch for its accuracy (Reporting by Copenhagen newsroom)