UPDATE 1-Telus CEO says merger with BCE "compelling"

(Reuters) - Telus, Canada's No. 2 phone company, confirmed early on
Thursday that it is in talks to explore the acquisition of
rival BCE, already the target of several potential
private-equity bidders, and has signed a non-disclosure and
standstill pact.




"Telus believes the combination of of the two businesses
would represent a compelling strategic and financial
opportunity for all BCE and Telus stakeholders," Telus Chief
Executive Darren Entwistle said in a statement.


Read more at Reuters.com Mergers News

American Greetings, Calpine, Cheesecake Factory, Sonic: U.S. Equity Movers

(Bloomberg) -- The following is a list of companies
whose shares are having unusual price changes in U.S. exchanges
today. Stock symbols are in parentheses after company names.
Share prices are as of 9:30 a.m. New York time.

Advanced Micro Devices Inc.(AMD US) gained 32 cents, or 2.4
percent, to $13.96. The second-largest maker of personal-computer
processors after Intel Corp. (INTC US) was upgraded to ``short-
term trading buy'' from ``hold'' by Stifel Nicolaus analyst Cody
Acree, who wrote that the company may have increased market share
by ``at least a couple of percentage points'' while second-
quarter revenue may exceed analysts' forecasts.


Read more at Bloomberg Stocks News

Union Pacific, Buffett, Icahn Win as Soaring Oil Drives Rail Renaissance

(Bloomberg) -- Nobody likes the rising price of oil
better than U.S. railroads.

As the cost of crude soars, rail is gaining a competitive
edge after losing ground to trucks for half a century. Even as
automotive plant closings and reduced U.S. housing construction
have contributed to a 4.4 percent drop in train shipments this
year, investors including Warren Buffett and Carl Icahn are
flocking to railroad shares, betting that higher oil prices and
surging Asian imports along with congested highways will boost
long-term demand.


Read more at Bloomberg Exclusive News

Freddie Mac sells $1.265 bln reference REMICs

(Reuters) - The joint lead managers on the sale were Citigroup Global
Markets, Credit Suisse and JP Morgan.




Read more at Reuters.com Bonds News

FHLB sells $3 billion 7-year global bonds

(Reuters) - The joint lead managers on the sale were Barclays, Goldman
Sachs and JP Morgan.




Read more at Reuters.com Bonds News

U.K. Gas Falls, Power Rises, Boosting Generating Plants' Operating Margins

(Bloomberg) -- U.K. natural gas for delivery a day
ahead declined after forecasts showed supply today may outstrip
demand. Next-day power rose on scarce supplies, boosting
operating margins at gas-fed plants.

Day-ahead gas for delivery at the National Balancing Point,
the U.K. trading hub, dropped 1.5 percent to 20.25 pence a therm,
according to prices on Bloomberg from ICAP Plc. That equals $4.04
a million British thermal units. A therm is 100,000 Btus.


Read more at Bloomberg Energy News

European Government Bonds Advance on Concern Hedge Fund Losses May Widen

(Bloomberg) -- European government bonds advanced in
London as concern losses at hedge funds run by Bear Stearns Cos.
may increase attracted investors to the safest assets.

Gains in debt sent 10-year yields down from near a five-year
high as Bear Stearns funds collapsed, stoking concern on
valuations in the collateralized debt obligations market. The
perceived risk of owning European corporate bonds, as measured by
credit default swaps, rose the most in three months today.


Read more at Bloomberg Bonds News