Shares in India's No. 3 steelmaker JSW Steel Ltd
Bank of America Merrill Lynch says proposed merger would dilute FY13-14 earnings by 13.7 and 10 percent respectively.
BofA Merrill Lynch has maintained its "underperform" rating on the stock, while reducing its target price to Rs 560 from Rs 609.
JSW Steel, which is already the top shareholder in JSW Ispat after a $476 million deal in 2010, said on Saturday it would pay one share for every 72 JSW Ispat shares.
