** Shares in Union National Bank UNB.AD (UNB) are up 12.4pct to 4.98 dirhams ($1.36) in early trade as investors foreseethe bank benefitting from a potential merger.

** Second day of double-digit gains for the stock after AbuDhabi Commercial Bank ADCB.AD (ADCB) said it was in earlymerger talks with UNB and separately with unlisted Al HilalBank; UNB confirmed talks with ADCB, saying they were "verypreliminary". urn:newsml:reuters.com:*:nL8N1VP3SZ

** Shares in ADCB edge down 0.6 pct to 7.95 dirhams afterrising 12.8 percent on Tuesday to the highest level since August2015.

** Abu Dhabi stock index .ADI gains 0.4 pct

($1 = 3.6728 UAE dirham)

(Reporting by Tom Arnold) ((tom.arnold@thomsonreuters.com))