AT&T (NYSE:T) and Deutsche Tel (DTEGY.PK) have not given up on the U.S. carrier buying T-Mobile USA. In fact, contrary to a WSJreport, are not in talks about a network-sharing alternative, sources say. If the merger was to win approval, DT has told AT&T it could provide “a few billion dollars” of financing for a buyer of any related divestitures.

BP (NYSE:BP) makes further progress in its plan to raise $45B to pay for the Gulf oil spill. It has agreed to sell its Canadian natural gas liquids business to Plains All American (NYSE:PAA) for $1.67B.

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Hertz (NYSE:HTZ) presents the FTC with a remedy package to shore up its faltering bid for Dollar Thrifty (NYSE:DTG). The company has lined up a strategic divestiture buyer to help make the deal palatable to regulators, according to one source. An outside attorney using circular logic partially explains why no deal has been struck after 18 months of pursuit, and says the FTC won’t agree to the deal in principle until the two players come to terms even though DTG says a deal must clear regulatory risk first.

Yahoo (NASDAQ:YHOO) may take a 20% stake in the firm after last night’s report of an Alibaba-led group. Kara Swisher reports that sources tell her there is no bid in the making. An Alibaba spokesman says flatly: “Alibaba Group has not made a decision to be part of a whole-company bid for Yahoo.”

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Onyx Pharmaceuticals (NASDAQ:ONXX) could command at least $70/share in a potential sale, or 70%-plus above its average in the past 20 days. Though pricey perhaps there it is still of interest to firms facing patent expirations such as Pfizer (NYSE:PFE), Bloomberg says. Onyx is developing a drug to treat blood cancer, and cancer is a growing area for drug makers in the market for transactions and new drugs.

ACI Worldwide (NASDAQ:ACIW) extends its tender offer for e-commerce company S1 (NASDAQ:SONE) while the two companies hammer out a pact. The deal will allow the DoJ more time to review the pact. In October, ACI agreed to acquire S1 for around $520M.

Lockheed Martin (NYSE:LMT) CFO Bruce Tanner says the defense contractor remains in an acquisition mode. He would also like to accelerate its pace from the last couple of years including dipping its toes back into the commercial pool. He says plays in the energy, health care, and cyber security sectors are all options as the firm looks to show positive revenue growth in 2012.

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