UPDATE 2-Market Chatter -- Corporate finance press digest

(Adds items on Dexia, KBC, UAE stock exchange)

BANGALORE, June 29 (Reuters) - The following corporate finance-related stories were reported by media on Tuesday:

* Financial services group Dexia SA (DEXI.BR: Cotation) is under no pressure to sell its insurance business in Turkey and is ahead on its plans to divest its bond portfolio, its chief executive said in a newspaper interview. [ID:nLDE65S03Z]

* Belgian bank KBC's (KBC.BR: Cotation) planned flotation of Czech unit CSOB is unlikely before the autumn, and the Belgian banking group may delay it further or scrap it altogether, Czech daily Hospodarske Noviny reported. [ID:nLDE65S0BI]

* Merger talks between the United Arab Emirates' two main bourses have reached an advanced stage, including a 9.5 billion dirham ($2.59 billion) evaluation of the Dubai Financial Market (DFM), a local newspaper said. [ID:nLDE65S07T]

* U.S. drugmaker Abbott Laboratories Inc (ABT.N: Cotation) is looking to sell its flu vaccine business in a deal that could fetch 500 million euros ($614 million), the Wall Street Journal said, citing people familiar with the matter. [ID:nSGE65S065]

* Saudi Telecom Company (7010.SE: Cotation), the Arab world's largest telecom company by market value, may buy a 10 percent to 15 percent stake in a newly created Indian telecoms tower unit, the Business Standard reported on Tuesday. [ID:nSGE65S02M]

* Several potential buyers are considering buying travel-search technology company ITA Software, the Wall Street Journal reported, citing people familiar with the matter.

ITA has been in exclusive discussions with Google Inc (GOOG.O: Cotation) over a potential deal, according to these people, the Journal reported. [ID:nN28109373

* China's Hebei Iron & Steel Group is in talks with Australia's Atlas Iron Ltd for a stake in its Ridley magnetite project, the China Daily newspaper reported, citing unnamed sources familiar with the matter. [ID:nTOE65R078]

For Deals of the day, please click on [ID:nSGE65S07S] (Compiled by Tresa Sherin Morera; Editing by Jon Loades-Carter)