MERGERS/DEALS (UPDATE 3)

** The state will obtain a further 5 percent of Poland's No.2 refiner, Lotos LTOS.WA, in exchange for stakes in three companies, including its remaining holding in the refiner's exploration and production unit, Petrobaltic. [ID:nLG632119]

** British oil and gas explorer Rift Oil Plc (RIFT.L) said it agreed to be acquired by Canada's Talisman Energy Inc (TLM.TO) (TLM.N) in a cash deal valued at about 114.8 million pounds ($186.8 million) [ID:nBNG361848]

** Procter & Gamble Co (PG.N) said it has acquired skin-care company Zirh, adding another high-end brand geared toward men to its lineup. [ID:nN16273202]

** Discount apparel retailer Syms Corp (SYMS.O) said it expects to close its purchase of bankrupt retailer Filene's Basement Inc. as early as Thursday. [ID:nN16510526]

** British department stores group House of Fraser denied it was considering selling any of its stores and said it was trading ahead of its expectations, with sales growth in the last 12 weeks. [ID:nLG614923]

** Private equity firms are being dissuaded from bidding for Sara Lee Corp's (SLE.N) household and personal-care business because the seller wants to attract a bidder from its own sector rather than a financial buyer, a source familiar with the situation said. [ID:nN16257691]

** Bond insurer Assured Guaranty Ltd (AGO.N) said it will raise $550 million through an offering of shares and notes, to reduce the stock component of its deal to buy Financial Security Assurance Holdings Ltd, a subsidiary of Dexia SA. [ID:nBNG120232]

** Malaysian sharia banking group BIMB Holdings (BIMB.KL) does not plan to sell down its 51 percent stake in Bank Islam, Group Managing Director Johan Abdullah said. [ID:nKLR294564]

** Bank Muscat BMAO.OM aims to sell its remaining stake in India's HDFC Bank (HDBK.BO) within the next thirty days, according to a statement on the Oman bourse website. [ID:nLG688710]

** Chemicals and drugs maker Jubilant Organosys Ltd (JUBO.BO) plans to sell a part of its industrial and performance products division, eyeing 3-3.50 billion rupees from the sale, the Economic Times said. [ID:nBOM115678]

** A U.S. bankruptcy judge rejected the proposed sale of bankrupt Phoenix Coyotes hockey team to the co-CEO of BlackBerry maker Research in Motion (RIM.TO) who planned to move the side to Canada. [ID:nN15247150]

** Southeast Asia's bourses are working to develop electronic trading links but are unlikely to merge, as suggested by a top Malaysian banker, Bursa Malaysia (BMYS.KL) said. [ID:nSIN435839]

** Australian industrial property trust Goodman Group (GMG.AX) said that it has formed a partnership with China Investment Corp (CIC), China's sovereign wealth fund. [ID:nSYU006696] (Compiled by Tina Kwan in Singapore and Antonita Madonna Devotta and Isheeta Sanghi in Bangalore)