MERGERS/DEALS (UPDATE 3)

** Japanese electronics maker Panasonic Corp (6752.T: Quote, Profile, Research) and its rival Sanyo Electric Corp Ltd (6764.T: Quote, Profile, Research) have won U.S. antitrust approval to merge, the Federal Trade Commission said. [ID:nN24299019]

** Windstream Corp WIN.N said it has agreed to buy Iowa Telecommunications (IWA.N: Quote, Profile, Research) for $530 million, excluding debt, as it looks to offset declining revenue from continued disconnections of home phones. [ID:nN24310222]

** Capmark Financial Group Inc [CPFNG.UL] said that it agreed to sell its mortgage loan servicing business to a joint venture between Berkshire Hathaway and Leucadia, which raised its bid on Monday to value the unit at about $468 million. [ID:nN24314498]

** Units of Somerset Entertainment Income Fund SOM_u.TO fell as much as 6 percent, a day before a takeover offer from private label music distributor Fluid Music Canada Inc (FMN.TO: Quote, Profile, Research) is expected to expire. [ID:nBNG508802]

** Tiny Swedish luxury carmaker Koenigsegg has pulled out of talks to buy Saab Automobile, putting in doubt the future of General Motors' [GM.UL] loss-making unit. [ID:nGEE5AN2H4]

** Shares of Coretec Inc CYY.TO more than doubled in morning trade after the provider of printed circuit board engineering agreed to be bought by DDi Corp (DDIC.O: Quote, Profile, Research) for about C$7.4 million ($6.98 million) in cash. [ID:nBNG458406]

** Asia-focused private equity firm Unitas Capital received nine bids for South Korean retailer Buy The Way, most in excess of $260 million, a source familiar with the situation said. [ID:nHKG330683]

** Kuwait's Kharafi Group and a consortium led by India's Vavasi Group have named advisers in a deal to sell a 46 percent stake in telecoms firm Zain (ZAIN.KW: Quote, Profile, Research), a Kharafi official said, in a sign that the deal was ongoing. [ID:nGEE5AN282]

** European Union competition regulators cleared Dutch animal feed producer Nutreco's (NUTR.AS: Quote, Profile, Research) acquisition of some of U.S. agribusiness company Cargill Inc's [CARG.UL] feed activities in Spain and Portugal. [ID:nGEE5AN2HA] (Compiled by Tina Kwan in Singapore; Fareha Khan and Jochelle Mendonca in Bangalore) ((tina.kwan@reuters.com; Reuters Messaging: tina.kwan.reuters.com@reuters.net +65 6870 3924))