M & A wrap: American Airlines files for Chapter 11

American Airlines and its parent company AMR Corp filed for bankruptcy after failing to win a labor deal with pilots and suffering from mounting fuel costs.

Thomas H. Lee Partners is interested in buying the U.S. operations of Yahoo, breaking away from other bidders that are for now eyeing either a minority stake or teaming up with the Internet giant’s partners in Asia, sources familiar with the matter said.

Facebook is now targeting a time frame of April to June 2012 for a initial public offering, raising possibly $10 billion, the WSJ reports.

The chances of an AT&T-T-Mobile merger grow dimmer by the day, but there may yet be hope on the horizon for the telecommunications giants – next year’s election.

“Social gaming company Zynga is planning to begin its IPO road show this coming Monday,”  Fortune reports.

M & A wrap: Tepco sheds assets

Mobile carrier KDDI Corp said it would sell up to $2.6 billion of convertible bonds and use the money to buy back its own shares from Tokyo Electric. Tokyo Electric is selling off assets under a restructuring plan to raise funds to compensate victims of the Fukushima crisis.

China is preparing to buy up plum assets in Europe, the commerce minister said, as the escalating debt crisis leaves countries in the region increasingly vulnerable to the deep pockets of Chinese firms.

Zynga’s tough work environment with its focus on metrics could cause a brain drain for the online game company, DealBook reports.

M & A wrap: T-Mobile deal on the rocks?

AT&T said it would take a $4 billion charge in case its takeover of T-Mobile USA fails, a tacit recognition of the dwindling chances that the deal will get through U.S. regulators. If the deal collapses, Deutsche Telekom may be forced to sell assets closer to home and take a knife to its cost base, reports Victoria Howley and Georgina Prodhan.

Australia’s government approved SABMiller’s $11.2 billion deal to acquire Foster’s Group under foreign acquisitions laws, but imposed conditions requiring the company to keep brewing operations in Australia.

Chow Tai Fook Jewellery Group could raise up to $2.83 billion, which would be the biggest Hong Kong initial public offering of the year, tapping volatile equity markets to fund the purchase of diamonds and gold and pay down debt.

M & A wrap: Olympus scandal heats up

Former Olympus Corp CEO Michael Woodford said that Tokyo police were best able to get to the truth behind one of Japan’s biggest accounting scandals, as speculation mounts of possible links to organized crime.

AT&T was dealt a blow as the top U.S. communications regulator sought to have its planned $39 billion purchase of T-Mobile USA sent to an administrative law judge for review.

“Battered Chinese companies listed in the U.S. or Singapore could be a feast for M&A bankers who see opportunities for take-private deals,” reports the WSJ’s Deal Journal.

M & A wrap: Exchange merger

The Tokyo Stock Exchange will take over its smaller rival in Osaka in 2013 to create the world’s third-biggest bourse, aiming to build scale to cope with a weak home market and compete with a flurry of global tie-ups.

KKR and Japanese trading house Itochu Corp have joined forces in a roughly $7 billion bid for U.S. oil and gas group Samson Investment, in a rare link-up between a major private equity firm and a Japanese company.

Shanda Interactive  said it agreed to be taken private by a group led by its Chief Executive Tianqiao Chen and his family in a deal that values the Chinese Internet firm at $2.3 billion.

M & A wrap: Merger Monday

Gilead Sciences struck a deal to buy Pharmasset for about $11 billion in a huge bet on hepatitis C treatments to diversify its portfolio.

Property and casualty insurer Alleghany said it would buy reinsurer Transatlantic Holdings for $3.4 billion in cash and stock, possibly putting an end to the months-long buyout battle for the reinsurer.

“Warren Buffett, who invested $23.9 billion for his Berkshire Hathaway in the third quarter, said the company could spend as much as $10 billion on its next acquisition,” Bloomberg reports.

M & A wrap: Boerse/NYSE offer concessions

Deutsche Boerse and NYSE Euronext will sell some businesses and give rivals access to a major derivatives clearing house in concessions aimed at winning support from antitrust regulators for their $9 billion merger.

Suzuki and estranged partner Volkswagen seemed headed for arbitration, after VW once again refused to sell its 20 percent stake back to the Japanese carmaker and end a floundering two-year alliance.

Groupon opened the IPO window a crack earlier this month and now companies, including Yelp, Angie’s List and even social-gaming giant Zynga, are climbing through it.

M & A wrap: Northern Rock sold

Britain has agreed to sell nationalized lender Northern Rock to Virgin Money, the banking arm of Richard Branson’s Virgin empire, in a loss-making deal that marks the start of the government’s exit from banks it bailed out in the 2008 crisis. Here’s a timeline of Northern Rock’s rise and fall.

“John Paulson, the billionaire hedge- fund manager having the worst year of his career, may have made a $439 million profit from the sale of his Delphi Automotive Plc shares in yesterday’s initial public offering,” Bloomberg reports.

“Angie’s List Inc. and Yelp Inc., which serve up online business reviews, are both tapping investor fervor for Web stocks with high-flying initial public offerings. But that’s where the similarities end,” the WSJ reports.

M & A wrap: The chess moves that entrepreneurs make

“Decisions that entrepreneurs make early in terms of financing can affect how much money they will reap later. We need only to compare the I.P.O.’s of Groupon, Zynga and Angie’s List,” writes the NYT’s Deal Professor.

Nikko Asset Management plans to list its shares through a 45.5 billion yen ($590 million) initial public offering on the Tokyo Stock Exchange, in what will likely be Japan’s second-biggest IPO this year.

“Thomas H. Lee Partners LP is among private-equity firms that submitted bids for GlaxoSmithKline’s consumer-health assets, while Sanofi SA remains interested in some brands,” Bloomberg reports.

M & A wrap: Shorting Groupon

On paper, Groupon appears to be a juicy target for short sellers: it loses money, it has changed its accounting twice, and its unproven business model faces competition from Google and Amazon. But the shorts may have to wait as betting against the daily deals website is just too expensive right now.

Bank of America’s sale of most of its shares in China Construction Bank earned the U.S. lender a tidy profit, but also underlined that BofA, like other foreign financial groups, found scant strategic gain in the Chinese stake it built.

Japanese regulators appear to be trying to regain the trust of investors unnerved by a scandal engulfing Olympus, with a formula that would punish the executives responsible harshly but let the once-proud firm stay listed on the stock market.