DealZone

BM&FBovespa, the world’s third-largest exchange operator by market value, aims to raise its stake in CME Group to 5 percent, making it among the top three shareholders in the fast-moving market maker. Given Brazil’s huge presence in global commodities markets, it’s not hard to see why the country’s main exchange would want to increase its exposure to the top U.S. commodities trading entity. BM&FBovespa said it will invest $175 million over 10 years in a new trading platform with CME. But shares in CME, the world’s largest exchange operator by market cap, fell in early trading, although they later recovered to rise moderately. Hardly the reaction one would expect on news that a hungry, strategic buyer is more than doubling its stake.

It is possible regulatory concerns weighed on the stock. Cross border mergers that include potential technology transfer are natural fodder for antitrust boffins. But Bovespa is likely in for the long haul, as it has more to gain from taking a position in CME than the other biggest shareholders, Blackrock and Fidelity.

As far as the timing goes, CME which already has a 5 percent stake in BM&FBovespa, said only a couple days ago it would buy the bulk of Dow Indexes, showing it is not afraid of moving on big-name deals. The stock is nearly 20 percent down from a year high hit in early January, possibly underscoring the case for Bovespa to move at bargain prices.

The companies also agreed to develop new technologies for high-speed trading platforms for stocks, derivatives, currencies, and government and corporate bonds. What exactly Brazil brings to the development table is not immediately clear. More likely, it hopes to leverage big bags of commodities trading. It has seen a boom in trading volumes since it began offering in August 2008 direct market access for investors looking to implement algorithmic and high-frequency strategies. So for Bovespa, as well as its trading clients, timing is everything.

If you were all twitchy with anticipation about Comcast’s NBC Universal deal, just wait for parts two and three! The gathering storm over the merger in Washington and other political power points not only promises to be more riveting, but the rights to part three are already being sold to a wave of media mergers hanging on the outcome.

As Anupreeta Das reports, media dealmaking could pick up if regulators impose minimal conditions on the NBC Universal transaction. But U.S. regulatory scrutiny is expected to be heavy, and the deal could take more than a year to be cleared. The LegalTimes blog notes that even the beauty contest among regulators hoping to oversee the process promises to have many twists and turns.

That might sound like a long wait, but it’s not likely to stop M&A lawyers from booking lunches and logging hours to get the balls in place to roll if the deal goes through. That kind or pressure could also work its way behind the scenes in Washington, where lobbyists will be armed with the argument that the merger will save capitalism as we know it by reigniting the dealmaking powderkeg of the early part of this century.

Following in the greatest of capitalist traditions, the Oracle of Omaha announced plans to buy up the shares he doesn’t already own in one of the country’s biggest railroads, Burlington Northern Santa Fe. And in an egalitarian, if unexpected, move, he said he would split his Class B stock to the tune of 50-to-1, making it possible for just about anyone to own Berkshire Hathaway’s traditionally lofty shares.

The railroad purchase is a bet on the future of America, Buffett said, and it’s his biggest acquisition ever. It values the railroad at $34 billion, and the price of $100 a share is a premium of nearly 32 percent. The premium vaults the railroad into the top spot by market cap, surpassing Union Pacific.

Buffett also owns stakes in other railroads, so it will be interesting to see if his move stirs any antitrust comments from Washington. Idiomatically, there is something profoundly rural in the Americana of Buffett’s latest bet; much more so than Berkshire Hathaway’s mainstay insurance business.

Sprint Nextel‘s stock soared 11 percent before the market opened on a British newspaper report that T Mobile parent Deutsche Telekom had appointed Deutsche Bank to advise on a possible run at Sprint, valuing the U.S. cellular carrier at $11 billion.

Sprint certainly is a logical target for any company looking to boost its position in the very busy U.S. mobile market. It announced a large goodwill write-off in February 2008

And Deutsche Telekom is on the make. It signed a deal with France Telecom to combine the companies’ British mobile phone businesses — T-Mobile UK and Orange — last week.

Natural and organic food grocer Whole Foods will sell 13 stores as part of a settlement that ends an antitrust battle with U.S. regulators over its acquisition of rival Wild Oats.

Is your store on the list?  

7133 N. Oracle Rd., Tucson, AZ 8688 E. Raintree Dr., Scottsdale, AZ 2584 Baseline Rd., Boulder, CO         1651 Broadway St., Boulder, CO         3180 New Center Pt., Colorado Springs, CO   5910 S. University Blvd., Littleton, CO 9229 N Sheridan Blvd., Westminster, CO 340 N. Main St., West Hartford, CT   4301 Main St., Kansas City, MO 1090 St. Francis Dr., Santa Fe, NM          7250 W. Lake Mead Blvd., Las Vegas, NV 19440 N.W. Cornell Rd., Hillsboro, OR 6930 S. Highland Dr., Salt Lake City, UT

(Photo\Mike Blake, Reuters)

Ticketmaster and Live Nation are reported to have approved a merger plan, but regulators may yet steal the show. The Wall Street Journal reports Ticketmaster approved the deal on Sunday and Live Nation followed suit on Monday after resolving a handful of accounting issues, described as minor.

Ticketmaster dominates the seat-selling business and has a big artist-management division. Live Nation brings a big network of concert venues, promoters and a promotional prowess in everything from T-shirts to fan clubs.

Obama administration antitrust folks just sitting down at their desks will be taking a long hard look at this deal, which would create the world’s largest concert promoter with an estimated market value of $700 million. Obama has promised to toughen up antitrust enforcement, and the enfeebled music industry is likely to mewl foul.