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

(For Reuters columns on deals, click on [DEALTALK/]

** Citigroup Inc (C.N: Quote, Profile, Research) was closer to a deal to join its Smith Barney business with Morgan Stanley's brokerage operation (MS.N: Quote, Profile, Research) in a move that would create the world's largest retail brokerage. To read more, please double click on [nN11285547]

** Malaysia's national car company Proton Holdings (PROT.KL: Quote, Profile, Research) may sell a controlling stake to a foreign carmaker, company Chairman Nadzmi Mohd Salleh told the Business Times newspaper. [nKLR417295]

** 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. [nLB726537]

** 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. [nL0698152]

** Africa Israel Properties (AFPR.TA: Quote, Profile, Research), a subsidiary of Africa Israel Investments (AFIL01.TA: Quote, Profile, Research), said it agreed to sell 51 percent of its holdings in Tel Aviv's Jubilee Tower to an entity controlled by foreign investors. [nLB676598]

** Morgan Stanley (MS.N: Quote, Profile, Research) could pay $2 billion to $3 billion or more for a controlling stake in Citigroup Inc.'s (C.N: Quote, Profile, Research) Smith Barney retail brokerage business, two people familiar with the matter said. [nN10502431]

** 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. [nLA528948]