Vodafone says decided against spinning off emerging markets unit

* CEO says splitting off emerging markets not right move now

* Does not rule out fresh Liberty merger talks

BARCELONA, Nov 11 (Reuters) - Mobile networks operatorVodafone has looked at spinning off its entire emergingmarkets unit, which includes its interests in India, Africa, NewZealand, Qatar and Turkey, but decided the synergies it givesjustified keeping the group together, Chief Executive VittorioColao said on Wednesday.

The size and scope of Vodafone's worldwide operations werein the spotlight this summer when it was in talks with Europeancable operator Liberty Global about an unspecifiedexchange of assets.

After the talks collapsed, analysts and bankers said theseparation of the emerging market division would make it easierto do a deal with Liberty over its core European operations.

Speaking on Wednesday at an investor conference held byMorgan Stanley in Barcelona, Colao said Vodafone's boardregularly reviewed the company's set-up but decided in its mostrecent deliberations that a split would not create value.

"We're open-minded. If one day there is a better option wewill look at it," he added.

However, Vodafone said on Tuesday it has startedpreparations to separately list its Vodafone India subsidiary,possibly in the next financial year, depending on marketconditions.

The group's 42 percent stake in the Indian mobile mastscompany Indus Towers would be included in the initial publicoffer, Colao said in Barcelona. The rest of the company is ownedby rival operators Bharti Airtel, with 42 percent, andAditya Birla Telecom's Idea Cellular .

"We'll indeed look for options for the tower company itself,but the tower company stake is part of the IPO process," hesaid.

The Liberty talks failed because the groups could not reachagreement on the value of the assets, but Colao did not rule outrestarting them, particularly because combining fixed line andmobile assets was attractive as markets converged.

"There is strategic rationale for combining fixed and mobileassets and getting the synergies out," he said.

"Whether things happen or not, you never know." (Reporting by Leila Abboud; Writing by Paul Sandle; Editing byGreg Mahlich)