DealZone

DealZone Daily

Friday’s highlights:

Citigroup Inc could pay commercial and investment banking bonuses for 2009 that are similar to 2008 levels, and may cap individual cash payouts at about $60,000, according to people that have been briefed on the plan.

CF Industries Holdings Inc (CF.N) withdraws its year-long hostile bid to buy rival fertilizer maker Terra Industries Inc (TRA.N) on Thursday, bringing a three-way battle for control of the North American fertilizer business closer to a conclusion.

Shiseido Co Ltd, Japan’s largest cosmetics company, agrees to buy U.S.-based Bare Escentuals Inc for $1.7 billion, as it looks to revamp its global brand and expand in North America.

Billionaire investor Wilbur Ross says he’s “quite possibly” interested in teaming up with Richard Branson’s Virgin Money to bid for state-owned British bank Northern Rock.

Willcom Inc, a Japanese mobile phone company majority owned by U.S. buyout firm Carlyle, may be bailed out by a government-backed turnaround fund, a person with knowledge of the matter says.

DealZone Daily

The New Year starts with a massive — though widely expected — deal as Novartis (NOVN.VX) says it plans to buy the rest of eye-care group Alcon (ALC.N) for almost $40 billion. The seller is Swiss food group Nestle, which as it happens is sometimes mooted as a rival for  Kraft’s (KFT.N) hostile 10 billion pound bid for Cadbury (CBRY.L). The British chocolate maker’s shares nudge up 4 pence to above 800 pence after media reports that Kraft is set to raise its offer. But markets were expecting a higher bid anyway.

And shares in Japan Airlines Corp (JALSF.PK) jump 31 percent as the country’s government looks to secure funds to prevent the carrier from running out of cash.

For more on these and other deal-related stories from Reuters, click here.

In other media:

National Australia Bank (NAB.AX) is gearing up for a takeover of nationalised British lender Northern Rock (NRKx.L) and has held a “beauty parade” of potential advisers on the deal, British newspaper The Observer reports.