Stocks: Mergers and Acquisitions

Jan 12 (Reuters) - The following bids, mergers, acquisitions and disposals involving European, U.S. and Asian companies were reported by 0400 GMT on Monday.

** Citigroup Inc (C.N) was closer to a deal to join its Smith Barney business with Morgan Stanley's brokerage operation (MS.N) in a move that would create the world's largest retail brokerage.

** Malaysia's national car company Proton Holdings (PROT.KL) may sell a controlling stake to a foreign carmaker, company Chairman Nadzmi Mohd Salleh told the Business Times newspaper.

** British bank HBOS Plc (HBOS.L) has been informally approached by private equity groups about buying its housing subsidiaries, Keepmoat and Apollo, according to a report in The Independent.

** Time has run out for Lufthansa to make a bid for a stake in Alitalia, Italian Prime Minister Silvio Berlusconi said, confirming Air France-KLM had sealed an alliance with the relaunched Italian carrier.

** Africa Israel Properties (AFPR.TA), a subsidiary of Africa Israel Investments (AFIL01.TA), said it agreed to sell 51 percent of its holdings in Tel Aviv's Jubilee Tower to an entity controlled by foreign investors.

** Morgan Stanley (MS.N) could pay $2 billion to $3 billion or more for a controlling stake in Citigroup Inc.'s (C.N) Smith Barney retail brokerage business, two people familiar with the matter said.

** Abu Dhabi's International Petroleum Investment Co (IPIC) is paying cash for a 70 percent stake in MAN Ferrostaal AG, and may acquire the remainder by 2010, the German company's chairman said.

** American International Group Inc (AIG.N) is close to a deal to sell its Canadian life insurance business, a source close to the transaction said.

** Sequenom Inc (SQNM.O) said it has proposed to buy Exact Sciences Corp (EXAS.O) in an all-stock deal valued at about $41 million to boost its cancer diagnostics offering.