BUZZ-InterContinental Hotels: Not in merger talks with Starwood
** Hotel operator down 4.3 pct, top FTSE 100 loser , after saying it is not in merger talks with Starwood Hotels
** Co's shares were up 2 pct on Thursday after reports that the two firms held early merger talks
** Nearly 20 pct of stock's daily avg volume gone through in the first ten minutes of trade; second-largest loser on pan-European benchmark Stoxx 600
** Losses have wiped out all of Thursday's gains, with stock now back to levels similar to Wednesday's close (venkateshasoumithri.mamidipudi.thomsonreuters.com@reuters.net)