UPDATE 2-Deals of the day - mergers and acquisitions

** Volkswagen (VOWG.DE) should integrate its majority shareholder Porsche SE (PSHG_p.DE) in any future merger, the chairman of VW, Europe's biggest carmaker, said in remarks embargoed for Tuesday. [nFAB013105]

** Israeli holding company Koor Industries (KOR.TA) said it had lowered its stake in Credit Suisse (CSGN.VX) to 1.5 percent from 2.04 percent, the fourth sale of shares in the Swiss bank reported by Koor in a little over two weeks. [nLC615724]

** Chemical maker Mitsui Chemicals Inc (4183.T) and Japan's third-largest refiner Idemitsu Kosan Co (5019.T) are considering integrating their Chiba Prefecture oil refining and ethanol production operations, the Nikkei business daily said. [nBNG459123]

** Russian carmaker GAZ (GAZA.RTS) said it would be interested in creating a joint venture with Canadian auto parts maker Magna (MGa.TO) and Opel, should the latter be acquired by a group of investors. [nLC33195]

** Spain's Iberia (IBLA.MC) should return to profitability next year, but management is so preoccupied with the worst downturn in memory that merger talks with British Airways (BAY.L) are on the back burner, its bosses said. [nLC619183]

** Telecom Italia (TLIT.MI) has hired banks to seek buyers for a 49 percent stake in its Sparkle business and could also sell some of the unit's assets, the Italian telecom company said on Tuesday. [nLC517625]

** Shui On Construction and Materials Ltd (0983.HK) said it made an improved offer for property investment company China Central Properties Ltd (CCPL.L), valuing its London-listed unit at about 249.12 million pounds ($378.4 million). [nBNG413664] (Compiled by Tina Kwan in Singapore; Mansi Dutta in Bangalore)