India's Devyani, Sapphire rises after media report says Yum plans local franchisee merger

** Indian Pizza Hut and KFC operators Devyani International DEVY.NS and Sapphire Foods SAPI.NS rise 3% to 172.1 and 9.9% to 352.35 rupees respectively

** Yum Brands YUM.N is in talks to facilitate a merger of its two franchisee partners in India, Economic Times reports, citing people aware of the matter

** ** DEVY, SAPI, YUM did not immediately respond to Reuters requests for comment

** Sapphire set for best day since 11 Feb, 2022, if gains hold

** The negotiations could result in DEVY either acquiring the franchisee rights of KFC and Pizza Hut from SAPI, or all of KFC's franchisee stores in India getting consolidated under DEVY, report adds

** A 1:3 share swap ratio is being prepared with Sapphire shareholders getting one share of DEVY for every three owned, the report further said

** DEVY, SAPI, YUM did not immediately respond to Reuters' requests for comment