UPDATE 2-Deals of the day -- mergers and acquisitions

** Idemitsu Kosan Co (5019.T), Japan's third-largest refiner, said it would buy British oil explorer Petro Summit Investment UK Ltd, a subsidiary of Japanese trader Sumitomo Corp (8053.T). [ID:nTKX006533]

** Russian billionaire Alisher Usmanov has rejected an invitation to contribute its 31.1 percent stake in Russia's third-largest mobile operator MegaFon to a new company announced by TeliaSonera (TLSN.ST) and Russia's Alfa Group. [ID:nLD624749]

** Swedish carmaker Koenigsegg will terminate more than a third of U.S. Saab dealers when it completes its purchase of the premium brand from General Motors Co [GM.UL], GM said in a letter to dealers. [ID:nN13460809]

** British renewable energy company Novera Energy (NOEN.L) is reviewing interest from bidders in a minority stake in one of its operating wind farm assets. [ID:nLD655965]

** British property investor Rugby Estates Investment Trust (REIT) (RUGB.L) has urged shareholders to reject an offer from Terra Investments, saying the 41-pence a share bid fails to reflect the underlying value and growth potential. [ID:nL0654099]

** Indian engineering conglomerate Larsen & Toubro (LART.BO) sold a third of its holding in outsourcer Mahindra Satyam (SATY.BO) for about $66 million, three sources close to the deal said. [ID:nBOM4360]

** South Korea's TV shopping channel, GS Shopping (028150.KQ), said it was set to buy a 15 percent stake in India's TV18 HSN Holdings Ltd for 21.4 billion won ($18.5 million), to break into the market. [ID:nSEL002750]

** British Airways' (BAY.L) pension fund deficit could yet scupper its planned merger with Spain's Iberia (IBLA.MC), as the UK airline still has to agree the size of the multi-billion pound shortfall with the fund's trustees, [ID:nLD644350]

** Unions for French nuclear reactor builder Areva (CEPFi.PA) sent an open letter to French legislators, asking them to block the sale of Areva's transmission and distribution (T&D) business. [ID:nLD713926]

** India's top mortgage lender, Housing Development Finance Corp (HDFC.BO), said it had agreed to buy about 41 percent in education loan provider Credila Financial Services from DSP Merrill Lynch Capital. [ID:nBMA006425]

** Some former bankers are planning to bid for failing banks in the Federal Insurance Deposit Corp auction process, and getting financial backing from Wall Street firms like Goldman Sachs Group Inc (GS.N) and Deutsche Bank AG (DBKGn.DE), the Wall Street Journal reported citing sources. [ID:nBNG213777]

** Shares of Palm Inc (PALM.O) rose 8 percent fueled by rumors that bigger rival phone maker Nokia (NOK1V.HE) may be eyeing the maker of the Pre and Pixi smartphones. [ID:nN13477156] (Compiled by Shobhana Chadha and Fareha Khan in Bangalore)