MERGERS/DEALS (UPDATE 3)

** Japanese brewer Suntory Holdings Ltd said it was considering a merger with larger rival Kirin Holdings Co (2503.T) in a deal that would create one of the world's largest beverage and food firms. [ID:nT368180]

** China Eastern Airlines said it will acquire rival Shanghai Airlines, a 9 billion yuan deal ($1.3 billion) which will create a newly capitalised carrier with more than half the air business in China's financial hub. [ID:nSHA356830]

** British public-relations company Huntsworth Plc (HNTS.L) acquired healthcare public relations firm Tonic Life Communications Ltd for an initial 3 million pounds ($4.84 million) in cash, and also said it expected to meet first-half profit forecasts. [ID:nBNG491164]

** British oil and gas explorer Emerald Energy Plc EMEN.L said it received a takeover approach, continuing a wave of consolidation in the sector and lifting its shares to their highest in over a decade. [ID:nBNG475946]

** Norske Skog (NSG.OL) said it is to sell its 56 percent stake in Shanghai newsprint mill Norske Skog Potential Paper (SNP) to a local partner and restructure its other activities in China to improve profitability. [ID:nLD541968]

** France's main electricity provider EDF (EDF.PA) and Italian utility Enel (ENEI.MI) are in talks to swap power generation assets as part of an earlier major deal, a source familiar with the situation said. [ID:nLD339935]

** Microsoft Corp (MSFT.O) is pitching to five of the world's biggest advertising companies a deal to buy Razorfish, its digital ad agency, The Wall Street Journal reported on Sunday, citing executives familiar with the situation. [ID:nN1296292] (Compiled by Tina Kwan in Singapore, Manasi Phadke and Sakshi A Mattoo in Bangalore)