HEADLINE STOCKS - U.S. stocks on the move on Dec. 31

(Updates to regular session trading)

NEW YORK Dec 31 (Reuters) - U.S. stocks on the move on Monday:

MERRILL LYNCH MER.N

British newspaper The Observer reported Merrill was in talks with Chinese and Middle Eastern sovereign wealth funds to raise more capital, following its recent deal with Singapore's government and an asset manager. [ID:nN31546150]

Merrill shares fell almost 1 percent to $52.46 on the New York Stock Exchange.

DELTA PETROLEUM DPTR.O

Investor Kirk Kerkorian's Tracinda Corp will invest $684 million to acquire about 35 percent of the oil and gas exploration company. [ID:nBNG5322]

Delta Petroleum stock soared 21.2 percent to $18.80 and ranked among the Nasdaq's biggest percentage gainers.

LOEWS LTR.N

The recent decision by conglomerate Loews to spin off its Lorillard tobacco unit could boost its stock by shrinking its total shares outstanding by 20 percent and eliminate much of the remaining tobacco-liability risk, business weekly Barron's said on Sunday. [ID:nN30536496]

Loews' stock rose 2.9 percent to $50.77 on the NYSE.

COGENT INC. COGT.O

Barron's said in its Dec. 31 edition demand for the automated fingerprint-identification technology developed by Cogent has not found a consistent market and as a result, the company's shares may be overvalued. [ID:nN30535052]

Cogent shares fell 8.7 percent to $10.62 on the Nasdaq.

SALIX PHARMACEUTICALS (SLXP.O)

Salix said late on Friday that Watson Pharmaceuticals Inc (WPI.N) will market an authorized generic of its anti-inflammatory drug, Colazal. On Monday, Piper Jaffray cut its recommendation on Salix's stock to 'sell' from 'neutral.' [RCH/US]

Salix shares fell 15.3 percent to $7.63 on the Nasdaq.

TEMPLE-INLAND INC TIN.N

Packaging and building products maker said on Monday it completed the tax-free spinoff of its Guaranty Financial Group and Forestar Real Estate Group to its shareholders. [ID:nWNAS5414]

Temple-Inland's stock surged 13.8 percent to $20.03 on the NYSE.