0923 GMT - StarHub may have to raise equity to finance a potential deal to buy peer M1, says Macquarie Capital's Zhiwei Foo in a note. StarHub confirmed it is in talks with M1 owner Keppel Ltd. to acquire the telecommunications unit. Foo estimates that StarHub could need to issue stock equivalent to 12% of its existing shares to ensure the deal is earnings-per-share-accretive within certain tested sensitivities, assuming that M1's enterprise value is 1.16 billion Singapore dollars and that M1 and StarHub have synergies worth around S$100 million. He reckons StarHub has to either negotiate a lower price or drive higher synergies with M1 to make the deal work. Macquarie continues to prefer Singtel in the telecommunications sector, given the uncertainty around a potential StarHub-M1 deal.