** Aurobindo Pharma ARBN.NS shares down 3.7 % at 1049.30 rupees, trimming earlier losses, after co says media reports on Zentiva deal "premature"

** Shares fell as much as 4.6% earlier in the session, their lowest since April 9, after reports said co was the front-runner to buy Prague-based Zentiva ROSCD.BX for $5.5 bln

** ARBN says no binding agreement or definitive decision has been made about the deal

** Around 3 mln shares traded, almost 2.7x their 30-day avg

** Twenty-six analysts covering ARBN have a "buy" rating on average; median PT is 1,300 rupees, per LSEG data

** As of Tuesday's close, stock is down ~20% YTD

(Reporting by Urvi Dugar)

((UrviManoj.Dugar@thomsonreuters.com))