UPDATE 1-Market Chatter -- Corporate finance press digest

(Adds Iberia and Citigroup)

BANGALORE Feb 3 (Reuters) - The following corporate finance-related stories were reported by media on Wednesday:

* Dubai World's investment arm Istithmar has put port and shipping agent Inchcape Shipping Services up for sale for $600-$700 million, attracting interest from private equity groups, the Financial Times reported. [ID:nLDE6112OZ]

* An Australian court has rejected a demerger proposal from Australian sugar and building materials conglomerate CSR Ltd (CSR.AX), domestic media reported. [ID:nSYU009341]

* Singapore's ST Telemedia, a unit of investment company Temasek [TEM.UL], is to buy Malaysian tycoon Vincent Tan's 33 percent stake in Malaysian 3G company U Mobile, the Star newspaper reported. [ID:nSGE61201F]

* Citigroup's (C.N) Mauritius arm is selling its 5 percent stake in Multi Commodity Exchange of India Ltd (MCX) to Ashmore Group Plc for $40 million, the Mint newspaper reported, citing two people familiar with the deal. [ID:nSGE61203D]

* Spanish airline Iberia IBLA.MC has slated Feb. 12 and Feb. 25 as possible dates to sign a memorandum of understanding for its merger with British Airways BAY.L, financial daily Cinco Dias reported. [ID:nLDE61205Z]

(Compiled by Purwa Naveen Raman in Bangalore; Editing by Dan Lalor)