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CHICAGO–M&M’s candy maker Mars Inc. has teamed with billionaire Warren Buffett to buy chewing gum manufacturer Wm. Wrigley Jr. Co. for $23 billion (U.S.), creating the world’s largest confectionery company.

The deal, announced yesterday, will give Buffett’s Berkshire Hathaway Inc. a stake of more than 10 per cent in Wrigley, which will become a separate Mars subsidiary. Buffett’s other food holdings include a stake in Kraft Foods Inc.

The deal could force Mars’s rival Hershey Co. and Britain’s Cadbury Schweppes PLC into a deal of their own. The two companies are reported to have held talks in the past.

Aside from Berkshire money, financing for the Wrigley deal is being provided by Goldman Sachs Group and JPMorgan Chase & Co., Mars said in a news release.

At $80 a share, the deal represents a 28 per cent premium over Wrigley’s closing stock price of $62.45 on Friday. Wrigley shares jumped 23 per cent on the New York Stock Exchange, and U.S. stocks edged higher on optimism about the deal.

While Wrigley, which began as a soap maker, said it was not seeking a takeover, the price was likely too high to ignore, Edward Jones analyst Matt Arnold said.

"I have a hard time explaining it any other way, really," Arnold said cashadvance. "There was no outstanding reason for them to sell it today except for the price."

Wrigley already traded at 23 times estimated 2009 earnings, the second-highest multiple in the Standard & Poor’s U.S. packaged foods index.

The combined companies would have a major presence in the global chocolate, gum and candy businesses.

"If you combine these two, really, it creates just a true confectionery powerhouse with global scale and a strong presence in emerging markets," Morningstar analyst Mitch Corwin said.

The deal helps Mars expand its business into places where Wrigley has been strong, including Eastern Europe, while Wrigley has been making efforts in recent years to expand outside its core chewing gum business, said Irina Kazanchuk, an analyst at Euromonitor International.

While Wrigley is a leader in chewing gum it has faced increasing competition from Cadbury’s gum business, which includes Dentyne and Trident.

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Soft-drink maker Cott Corp. (TSX: BCB) posts first quarter loss of $20.7 million, 29 cents per share, compared to year-ago profit of $4.8 million or seven cents per share quick payday. Sales fall 2.6 per cent to $389.7 million on case volume decline.

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First-quarter net earnings toppled by more than half at Brookfield Properties Corp., but the company says its commercial real estate operations are solid, helping to offset shakiness in residential.

Brookfield Properties, which reports in American currency, booked a profit of $23 million (U.S.), or six cents per share, for the first three months of this year, the company said yesterday. That was down from $53 million, or 13 cents, a year earlier, but that quarter included a $34 million gain on the sale of three properties in Toronto and Ottawa.

The company’s 76 million-square-foot portfolio includes the World Financial Center in Manhattan, Brookfield Place in Toronto, Bank of America Plaza in Los Angeles and Bankers Hall in Calgary.

Revenue increased to $665 million from $634 million. Funds from operations slipped to $126 million from $129 million.

Brookfield Properties, majority owned by Brookfield Asset Management Inc., said the commercial property operating profit rose 11.5 per cent to $349 million, while its residential operations suffered a 57 per cent profit setback to $18 million.

Despite that, "the fundamentals of the Western Canadian residential operations remain strong despite a slow quarter as a result of higher than normal housing inventory levels," the company said.

Those levels, however, could drop as the energy-fed boom continues in the West creditscore.

"With oil and natural gas prices hitting new highs, Brookfield Properties expects the residential division to continue to increase its sales pace, which has improved each month since the beginning of the year."

Brookfield Properties said its holdings were 95.4 per cent leased, and the average net rent swelled 42 per cent during the quarter to $32.71 per square foot.

Developments under construction were 53 per cent leased at March 31. A key project, the 1.2 million-square-foot Bay Adelaide Centre West Tower in downtown Toronto, "continues on budget and on schedule" and is 65 per cent pre-leased.

The Canadian Press

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Canadian shoppers, already paying more for bread and facing even higher prices for baked goods, should expect the cost of meat products to rise as well in the coming months as grain costs continue to hover near record levels, says an organization for the country’s biggest grocers.

Products made from grain, including pasta, cereal and other flour-based foods, have already incorporated much of the higher price levels, Dave Wilkes, senior vice-president of trade at the Canadian Council of Grocery Distributors, said Thursday.

But “downstream” foods – products from livestock which consume grain as feed – haven’t yet been fully impacted, Wilkes said.

“As grains and corn go up, the cost to raise cattle, pigs, and poultry will also go up, and that will be translated into the cost of the final product … in the next little while,” he said.

“The challenge that the industry is having at this front is that it’s such a foundational component of the food that we deliver to Canadians every day.”

Wilkes said Canadians have already seen a 9.9 per cent rise in the price of a loaf of bread over the last year, tied directly to a 128 per cent increase in the cost of baking-grade wheat.

That has made it tougher for grocers to maintain low pricing for staple items.

“The adjustments that occur throughout the supply chain may be just beginning,” he said. “As the supplier increases their costs and translates that onto the retailer, that retailer will most likely have to reflect those changes at the shelf level.”

Representatives for the country’s biggest grocery chains, Loblaws, Metro and Sobeys, either didn’t return calls seeking comment or declined to discuss their bread pricing strategy.

Canadian consumers can expect to pay higher prices for food amid global shortages of basic grains and soaring fuel costs, more food industry executives are warning.

Maple Leaf Foods Inc., (TSX: MFI) Canada’s largest hog producer and major bread maker, even went so far as to say today that the era of cheap food might be coming to an end.

“These are stunningly challenging and unique times,” Michael McCain, president and chief executive told the company’s annual general meeting in Toronto today.

Maple Leaf posted a small loss in its first quarter, as sales declined nine per cent while high grain costs ravaged profitability in its bakery and hog operations.

Meanwhile, Canada Bread Co. (TSX: CBY), 88 per cent owned by Maple Leaf, also warned that consumers can expect to pay more as the bread producer reported a 32 per cent drop in first-quarter profit amid “significant margin compression due to rising wheat prices.”

Comparing the current rise in the price of basic grains, such as wheat, corn, soybeans and rice, to the soaring cost of oil and base metals, McCain said: “This is the beginning of a structural increase in food prices absolutely free credit report. Food will be considerably more expensive well into the future.”

The Toronto-based company, whose brands include fresh pork and chicken, Schneider’s meats, Dempster’s Bread, and Olivieri pasta, said it is doing everything it can to control costs. But it has still had to pass on cost increases.

Maple Leaf Foods is Canada’s third largest processor of branded foods, after Procter & Gamble and Kraft, which have also raised prices.

“The continued rise in wheat prices together with increase in prices of other commodities, such as fuel and general inflation, has had a significant short-term impact on our margins and financial results,” said Richard Lan, president and CEO of Canada Bread, which makes fresh bread, rolls, bagels and sweet goods, pasta and other products under brands that include Dempster’s, Olafson’s, POM, Ben’s and Olivieri.

“We expect to recover these costs and restore margins through ongoing pricing and cost-reduction initiatives, although there will be a lag effect as we work with our customers to manage the flow-through of these price increases.”

Neither company was specific on how much it plans to raise prices.

In its financial report, Maple Leaf said it lost $10,000 in the quarter, nil per share, compared with a profit of $10.5 million or eight cents per share in the year-ago period.

Revenues fell to $1.2 billion from $1.32 billion.

Canada Bread’s first-quarter profit was $12.2 million or 48 cents per share on revenue of $382.9 million, down from year-ago earnings of $17.9 million, 70 cents per share, on $358.3 million in sales.

During the quarter, Maple Leaf management announced a second-shift cut operation will begin by September at its Brandon, Man., plant, while the fresh pork processing plant in Winnipeg is being closed. At the same time, an expansion is underway to consolidate ham boning operations at the Lagimodiere Road plant in Winnipeg.

The company is preparing for the sale of its pork plant in Burlington, Ont., which processes over two million hogs per year.

“The environment for North American hog producers continues to be very difficult as hog prices have not strengthened despite substantial increases in feed grains, including corn and barley,” Maple Leaf observed.

“Through its reorganization, Maple Leaf will significantly reduce the number of hogs it produces.”

Meanwhile, the company completed the purchase of Aliments Martel Inc., “an important strategic acquisition,” which makes it the national market leader in pre-packaged sandwiches.

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NEW YORK–Canadian Finance Minister Jim Flaherty on Wednesday said the Canadian economy is in good shape and can withstand a deeper U.S. slowdown with only a minor impact on growth.

In an interview with Reuters TV, he said the economy may grow at a 1.6 per cent rate this year instead of 1.7 per cent as previously projected.

But he added that "we are in the right area for our growth, we have low interest rates and relatively low inflation. The fundamentals are fine, they have not changed."

After cutting benchmark interest rates by half a percentage point this week, the Bank of Canada said its outlook for the U.S. economy had deteriorated since January and warned of a "significant drag" on Canadian growth this year.

The central bank has slashed interest rates by 150 basis points since December, pushing borrowing costs to three per cent.

Flaherty said Canada "will be affected" by slower U.S. growth, but added that "we have a different situation."

"Our banks are well capitalized, they have good balance sheets, we have not had a housing bubble and our homeowners have got good balance sheets."

Flaherty said high commodity prices and recent tax cuts should help Canada "weather the storm" in the United States, its biggest trading partner.

In a separate interview on Canada's Business News Network television, though, Flaherty said the country would face a big setback if investors reject a proposed restructuring offer for C$32 ($31.7 billion) worth of asset-backed commercial paper that's been frozen since last August.

"That would be a significant setback, a significant disappointment after all the work that's been done to get that resolved within the private sector," he said..

The ABCP issued by nonbank players seized up last summer when investors lost confidence due to concerns about links to U.S pay day loan. subprime mortgages.

A special committee has drafted a proposal to convert the commercial paper into longer term notes, which can only succeed if a majority of investors approve it in a vote Friday, but the process has become mired in uncertainty tied to legal issues.

Speaking to Bloomberg TV on Wednesday, Flaherty said officials from the Group of Seven rich countries did not discuss coordinated intervention in currency markets when they met earlier this month.

The G7, which comprises the United States, Canada, Britain, Germany, France, Italy and Japan, voiced concern about sharp fluctuations in currency markets, though Flaherty said his had had little impact on exchange rates.

The U.S. dollar, which began falling sharply last summer, has continued its slide, hitting a record low against the euro on Tuesday, and has remained near parity with the Canadian dollar.

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CHICAGO–Heavy equipment maker Caterpillar Inc. said yesterday that demand for its global mining and energy products pushed first-quarter earnings up 13 per cent, far surpassing Wall Street estimates.

Its stock surged in New York on the news and share prices of two Canadian firms that sell and service Caterpillar equipment also rose on the Toronto Stock Exchange.

Caterpillar’s results did show continued weakening in North America, where the U.S. economy’s gone soft, but better-than-expected strength as sales overseas benefited from the weak American dollar.

Caterpillar said it earned $922 million (U.S.), or $1.45 a share, January through March, compared with $816 million, or $1.23 a share, in the year-ago quarter.

Analysts surveyed by Thomson Financial foresaw profit of $1.33 a share.

Revenue rose 18 per cent to $11.8 billion from $10.02 billion a year earlier – fully $1 billion above analyst estimates. Sales increased 4 per cent in North America but 30 per cent internationally.

Caterpillar said currency impact added $310 million to revenues for the firm based in Peoria, Ill.

CEO Jim Owens noted its financial products business logged its best first quarter for revenues and profit, despite credit market challenges payday advances.

"Even though North America, our largest geographic market, is depressed, we are investing for growth," Owens said.

The U.S. heavy equipment giant’s shares closed on the NYSE up $6.69 to $85.28, as more than 20 million shares traded.

In Canada, shares of Finning International, a major Caterpillar equipment dealer based in Vancouver, finished the day up 81 cents a share at $31.00 (Canadian). Finning has sold lots of the giant CAT trucks to oils-sands operators in northern Alberta as well as South American mining outfits.

Toronto-based dealer Toromont Industries was up $1.05 to $31.91 at the close.

Caterpillar’s writeoffs, as of March 31 were $20 million (U.S.) up from $15 million a year earlier, reflecting the U.S. housing slump.

Caterpillar still expects 2008 earnings per share to rise 5 per cent to 15 per cent over 2007, and sales to improve 5 per cent to 10 per cent.

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SAN FRANCISCO–Investors appear ready to embrace Google Inc. again after weeks of hand wringing over whether the faltering U.S. economy would bog down the Internet search leader's moneymaking machine.

Google won back Wall Street with first-quarter earnings and revenue growth that surpassed analysts' predictions, propelled by an aggressive push outside the United States.

The pleasant surprise, delivered late Thursday, lifted Google's recently sagging shares by nearly 17 per cent, or $75.89, to $525.43 at the open of trade Friday.

"This is mostly a relief rally," Stanford Group analyst Clayton Moran said. "People are relieved that things aren't as bad as they thought.''

The stock still has a long way to go to fully recover the $75 billion in shareholder wealth that evaporated as economic worries caused Google's market value to plunge by 35 percent since December. That left the company's shares at $449.54 at the end of Thursday's regular trading.

Google's performance indicates the Internet's advertising market – expected to generate $44 billion in worldwide spending this year – remains robust, especially outside the United States. Powered by its popular search engine, Google has built the Internet's most lucrative ad network.

Despite Google's reassuring first quarter, some analysts and investors remain cautious because so much of the company's ad revenue comes from small and midsize businesses more apt to curb their spending if the economy's woes worsen.

"The fact Google hasn't seen a slowdown yet just means that there might be another shoe to drop," said Darren Chervitz, co-manager and research director for the Jacob Internet Fund, which has sold about half of its Google holdings in recent months.

Google's aura of invincibility remains intact for now, much to the delight of its chairman and chief executive.

"It's clear we are well positioned for 2008 and beyond, regardless of the business environment we are surrounded by,'' Chairman Eric Schmidt said.

Schmidt and other Google executives expressed confidence that the company's ability to divine consumer interests from their online search requests to deliver relevant ads will hold its appeal even if the U.S. economy sinks into a recession.

The company also expects to boost its profits by offering more dynamic advertising through its recently completed $3.2 billion acquisition of online marketing service DoubleClick Inc., as well as YouTube.com, the video-sharing site that Google bought for $1.76 billion in 2006.

In an apparent attempt to hold down its expenses, Google also is hiring employees at a slower pace.

Excluding the 1,500 workers picked up in the DoubleClick deal, Google added about 850 employees in the first quarter, a nearly 50 percent decrease from the same time last year bad credit payday loans. What's more, Google confirmed it's jettisoning about 300 DoubleClick jobs in the company's first major payroll purge.

Google earned $1.31 billion, or $4.12 per share, during the first three months of the year. That represented a 30 percent increase from net income of $1 billion, or $3.18 per share, in the first quarter of 2007.

If not for expenses to cover stock given its employees, Google said it would have made $4.84 per share.

That figure outstripped the average projection of $4.52 per share among analysts surveyed by Thomson Financial.

It marked the 12th quarter out of the 15 since Google went public that its performance has topped analyst expectations – a trend that had helped propel its stock to nearly $750 before the recent plunge.

First-quarter revenue totaled $5.19 billion, up 42 percent from $3.66 billion a year ago. More than half of the revenue came from outside the United States – a first for the 91/2-year-old company.

Google's first-quarter showing could foreshadow a strong earnings report from Yahoo Inc. next week.

If it can meet or exceed analyst expectations like Google did, Yahoo will be in a better position to ward off Microsoft Corp.'s unsolicited takeover bid or at least argue for its suitor to raise the cash-and-stock offer from its current value of about $42 billion.

Google is trying to help Sunnyvale-based Yahoo thwart Microsoft by helping Yahoo place ads on its Web site as part of a test scheduled to conclude next week. Schmidt declined to answer a question about the chances of Google signing a long-term advertising contract with Yahoo – a deal that would likely face intense scrutiny from antitrust regulators.

"It's nice to be working with Yahoo," Schmidt said. "We like them very much.''

Investors had serious doubts about Google's short-term prospects before Thursday.

The financial targets that guide Wall Street's expectations had fallen during the past two months as Web surfing data convinced analysts that Google's advertising links aren't attracting as much consumer interest amid mounting evidence the U.S. economy had tumbled into a recession. Google makes money from the links only when Web surfers click on them.

But management has said the slowdown in ad clicking largely reflected changes that purposefully reduced the volume of commercial links in an effort to deliver more compelling messages that lead to purchases.

By making this switch, Google bet that advertisers would be willing to pay more for each ad link and ultimately generate more revenue from fewer clicks – an approach that appeared to start paying off in the first quarter.

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GATINEAU, QUE. — Canadians are being deprived of those much-hyped American Superbowl advertisements during the big game each year and this country’s simulcasting rules should be changed so we can watch them, the federal broadcast regulator heard today.

Bragg Communications Inc., which owns cable operator EastLink, told the Canadian Radio-television and Telecommunications Commission it ought to make this one exception to ongoing simulcast requirements.

The reasoning? American advertising has always been a huge component of the Superbowl games and Canadians viewers want to see them.

"We believe the Canadian broadcasting system would be the net winner by encouraging consumers to remain within the regulated system if the Superbowl was exempt from simulcasting requirements," said co-chief executive officer Dan McKeen.

"We can tell you it is the number one issue we have with our customers every year."

Simultaneous substitution is the practice of replacing American signals with local signals when both stations broadcast the same show faxless payday loans.

It enables the insertion of Canadian advertising in American shows, a major revenue driver for domestic broadcasters.

"In the vast of majority of cases simulcasting is a good thing, people don’t mind it. It helps the system, it is all good except for this one example" McKeen said.And that’s because the Superbowl is a "phenomenon." The lead up to the American ad campaign lasts for months and then Canadians feel cheated when they are unable to watch them.

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DALLAS–Blockbuster Inc. said Monday it has offered to pay more than $1 billion for struggling Circuit City Stores Inc., but the nation's second biggest consumer electronics chain questioned whether the movie-rental company can finance the deal.

Blockbuster Chief Executive James Keyes said combining the companies would create a chain that could sell portable devices and entertainment for them, much like Apple Inc.'s stores.

Keyes said the offer is supported by Blockbuster board member Carl Icahn, who could be a source of financing for the deal.

Circuit City shares climbed 30 percent in afternoon trading.

Blockbuster, which hopes to enlist Circuit City shareholder support for its bid by disclosing previously private communications with Circuit City's leaders, has had troubles of its own competing with online movie rental operators like Netflix Inc.

Circuit City said it has exchanged information with Blockbuster but wasn't convinced how the movie-rental chain would finance its offer. Circuit City advised its shareholders to take no action until the company board reviews the bid.

Blockbuster said it has been in talks with Circuit City for months regarding an acquisition, and sent a letter Feb. 17 to Circuit City Chairman and Chief Executive Philip Schoonover offering $6 to $8 per share in cash for the company provided it be allowed to examine its financial books and outlook.

Based on Circuit City's 168.4 million shares outstanding at Dec. 31, 2007, the deal values Circuit City at $1.01 billion to $1.35 billion. The offer also represents a 25 percent to 67 percent premium to Circuit City's closing stock price of $4.79 on Feb. 15, the last trading day before Blockbuster made its offer, and at least a 54 percent premium to the stock's closing stock price Friday of $3.90.

Circuit City shares rose $1.17 to $5.07 in afternoon trading Monday. Blockbuster shares fell 51 cents, or 16.3 percent, to $2.62 after sinking to a 52-week low of $2.52 earlier in the session.

Circuit City is the nation's No. 2 consumer electronics chain after Minnesota-based Best Buy Inc.

Blockbuster said in its February letter it is willing to pursue alternative deal structures which would enable Circuit City shareholders to receive stock. The company would expect to fund the takeover with borrowings and issuance of additional stock through a rights offering to existing shareholders.

Blockbuster says that it requested a response by Feb. 21, but, to date, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive takeover proposal. Blockbuster is asking for such information as Circuit City's long-term corporate strategic plan and outlook, detailed store-level performance data and current inventory aging schedules, among other items.

Keyes called the offer "a significant premium" to Circuit City's share price and said the combination of the chains would create "a game-changing retail concept with a sustainable competitive advantage.''

Keyes also said the decision to move forward with a bid despite the lack of response from Circuit City management "really came from the situation in the marketplace now and of course the current recent trading price of Circuit City.''

Circuit City shares have declined steadily from a year-ago high of $19.12 to reach a low of $3.44 last month cash advance now. The struggling electronics retailer, the nation's second-largest, did swing a profit of $4.85 million for its fiscal fourth quarter, due to cost-cutting efforts and a $7.3 million tax benefit – its first quarterly profit since the second quarter of 2007.

It is facing pressure from activist shareholder Wattles Capital Management who seeks improved profitability, and the ousting of Schoonover and the board.

Mark J. Wattles has said turnaround efforts under Schoonover have been "disastrous" and suggested other changes to help “unlock hundreds of millions of value in the near term and billions of value in the long term.''

Wattles, founder of the Hollywood Entertainment video-rental chain, wants to kick out all of Circuit City's 12-member board and nominate five directors. The owner of the 32-store Ultimate Electronics chain had also said that Circuit City should hire an investment bank to evaluate any possibility for a takeover offer.

Blockbuster is undergoing its own turnaround and has been cutting costs and only recently growing its core rental business. Analysts questioned the timing of a play for Circuit City.

BMO Capital Markets downgraded Blockbuster stock. Analyst Jeffrey Logsdon said, "We fail to understand the strategic value of the company's hostile bid for Circuit City," which he said could divert the movie-rental chain's focus and finances away from its own recovery.

Circuit City lost the crown of No. 1 American consumer electronics chain to Best Buy in the 1990s as Best Buy built bigger stores in better locations and achieved greater economies of scale.

The company, which operates more than 680 stores nationwide, has been looking to its smaller concept stores, widespread cost-cutting and Firedog installation business to spark a turnaround despite increasing competition and the faltering economy.

Over the last year, Circuit City has done some restructuring – cutting retail management positions, eliminating jobs at its corporate offices and laying off 3,400 retail workers and hiring lower-paid replacements.

A combined company would start with 9,300 stores including about 5,500 in the United States. Keyes said he would save money by combining back-office operations and probably close some Blockbuster stores that are near Circuit City locations, which tend to have longer leases.

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SAN FRANCISCO–Microsoft Corp.’s attempt to take over Yahoo Inc. has become so tortured it may help Internet search and advertising leader Google Inc. grow stronger, undermining Microsoft’s main reason for pursing the deal.

"We find this to be a very advantageous situation for Google," said Cantor Fitzgerald analyst Derek Brown. "The longer this gets dragged out, the better for Google."

Yahoo signalled it is bracing for a protracted battle when an announcement and a media leak late Wednesday provided a glimpse at its labyrinthian search for alternatives to Microsoft’s bid of more than $40 billion (U.S.).

The options include an experimental advertising alliance with Google that could lead to a broader partnership and, according to published reports, a combination with the online operations of Time Warner Inc.’s AOL. Google also owns a 5 per cent stake in AOL.

As part of the AOL deal, Time Warner would get a roughly 20 per cent stake in the merged entity in return for a substantial sum of cash that would help Yahoo buy back some of its stock at a price well above Microsoft’s offer, which was initially valued at $31 per share.

"This is the first time we have seen real feasible alternatives that could derail the Microsoft deal," said analyst Jeffrey Lindsay of Sanford C. Bernstein & Co.

Other analysts doubt Yahoo will succeed in thwarting Microsoft but believe it could force the world’s largest software maker to raise its offer as high as $35 per share, or about $50 billion.

For its part, Microsoft has indicated it may lower its offer if Yahoo doesn’t accept the current bid by April 26 guaranteed cash advance loan. But that threat came before details of Yahoo’s alternatives with Google and AOL emerged.

Although Microsoft has plenty of money to up the ante on its own, it may draw upon another deep pocket – Rupert Murdoch’s News Corp.

Under this reported scenario, News Corp. would contribute the top social network, MySpace.com, and some cash in a Yahoo takeover. The proposed deal would put three of the Web’s most popular sites – Yahoo, MySpace and Microsoft’s MSN – under the same umbrella.

And in another ironic twist, Google could benefit if Microsoft and News Corp. buy Yahoo because it already has a long-term contract to show ads on MySpace.

Microsoft, Time Warner and News Corp. all declined to comment. A Yahoo representative didn’t respond to inquiries about the AOL deal. Yahoo directors were to meet yesterday to discuss the company’s options.

The reported negotiations to bring together some of the world’s largest websites underscores the Internet’s maturation as a business sector. As consumers spend more time online, the smart money is following them – and now there’s a mad scramble to latch on to the prime properties in this promised land of future profit.

"The most likely outcome here is that a few players will become more and more dominant on the Internet," said Georgia State University professor James Owers, a specialist in media and corporate finance.

The stakes are so high News Corp. and AOL might decide to join forces if their latest talks with Microsoft and Yahoo don’t pan out, said Citigroup analyst Jason Bazinet.

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