MERGERS/DEALS (UPDATE 2)

** Coal India, the country's biggest coal producer, has hired Bank of America-Merrill Lynch (BAC.N), Royal Bank of Canada (RY.TO) and Royal Bank of Scotland (RBS.L) to help it make deals as it hunts for coal assets overseas, a company official told Reuters. [ID:nBMA007333]

** Abraxis BioScience Inc ABII.O has hired financial advisers to help it weigh strategic options, including the possible sale of the company, sources familiar with the situation said on Tuesday. [ID:nN13255210]

** U.S. private-equity firm Kohlberg Kravis Roberts & Co KKR.AS is in talks to buy a controlling stake in Indian back-office service provider Firstsource Solutions (FISO.BO), three sources with direct knowledge of the matter said. [ID:nBMA007336]

** Shares of Bayer (BAYGn.DE) rose on Tuesday as traders pointed to renewed market talk peer Novartis (NOVN.VX) may make a bid for the drugmaker. [ID:nWEB9511] (Compiled by Aftab Ahmed and Arnika Thakur in Bangalore)