UPDATE 1-Market Chatter -- Corporate finance press digest

(Adds Morgan Stanley, Hana Bank, Barclays Capital, Opel)

BANGALORE, Sept 7 (Reuters) - The following corporate finance-related stories were reported by media on Monday:

* U.S.-based financial services firm Morgan Stanley (MS.N), wants to exit its back-office operations in India, the Economic Times newspaper reported. [ID:nBOM331522]

* South Korea's No. 4 lender Hana Bank will buy a 18.44 percent stake in the Bank of Jilin in northern China for $316 million, said Yonhap news, citing an unnamed Hana Bank official. [ID:nSEL000766]

* Barclays Capital is set to open up its natural resource investment unit to sovereign wealth funds as it seeks to meet investor demand left unsatisfied by the current market, the Financial Times reported. [ID:nL746686]

* Russian billionaire Oleg Deripaska's carmaker, GAZ (GAZA.RTS), the Russian industrial partner in a Magna-led bid for Germany's Opel, is not interested in an equity stake in Opel, Deripaska told Vedomosti newspaper. [ID:nL7496401]

* Huntsman (HUN.N), an American chemicals group, is looking to buy chemical plants in China with part of a $2.7 billion compensation package, said senior executive Paul Hulme in a Financial Times interview. [ID:nL6447851]

* Senior lenders to Incisive Media [APARTV.UL] have entered into a lock-up over a deal to take control of the business-to-business publisher, reported the Daily Telegraph, without citing sources. [ID:nL7617904]

* Leading Indian engineering firm Larsen & Toubro (LART.BO) is in talks to buy a thermal coal mine in Australia for about $300 million, the Economic Times reported, citing two people familiar with the matter. [ID:nDEL463291]

* China Merchants Securities has set up a unit to invest in pre-IPO companies, bringing to 15 the number of Chinese brokerages with a private equity licence, Securities Times reported. [ID:nSHA324715]

* British Airways BAY.L is considering a possible bid for rival UK airline bmi and talks between BA and bmi's German owner, Lufthansa (LHAG.DE), have already taken place, according to the Sunday Times. [ID:nL6050759]

* Jaeger fashion chain Chairman Harold Tillman is considering a bid for 158-year-old fashion brand Aquascutum, according to the Mail on Sunday. [ID:nL6042009]

* Ryanair (RYA.I) will ultimately succeed in buying Irish rival Aer Lingus (AERL.I), airline Chief Executive Michael O'Leary told the Sunday Independent newspaper. [ID:nL6402478]

* A group of Asian investors are in the final stage of buying a 46 percent stake in Kuwaiti telecom firm Zain (ZAIN.KW), Al-Arabiya television reported on Sunday. [ID:nL6392131]

* The managing director of Lloyds' (LLOY.L) specialist finance arm is considering a management buyout of its integrated finance unit and Lloyds is mulling options to raise cash, two British papers said in separate reports on Sunday. [ID:nL6014807]

* British bank HSBC (HSBA.L) has made a bid of about 1 billion pounds ($1.63 billion) for Dutch financial group ING's (ING.AS) private banking businesses, according to a report in The Sunday Times. [ID:nL6021559]

* British bus and rail group Stagecoach (SGC.L) will give the government a 100 million pound ($163.3 million) "change of control" payment to take over National Express's (NEX.L) rail unit, according to the Sunday Telegraph. [ID:nL6040630]

* Xstrata (XTA.L) has asked its bankers to study the viability of a new 3 billion pounds ($4.90 billion) bid for platinum producer Lonmin (LMI.L), according to the Observer newspaper on Sunday. [ID:nL6030712] (Compiled by Shivani Singh; editing by Simon Jessop)