Deals of the day- Mergers and acquisitions

Oct 17 (Reuters) - The following bids, mergers, acquisitions and disposals were reported by 11:00 AM GMT on Monday:

** Supervalu Inc SVU.N said it would sell its Save-A-Lot business to Canadian private equity firm Onex Corp OCX.TO for $1.37 billion, more than a year after saying it was considering a spinoff of the discount grocery chain. Alaska Air Group Inc ALK.N was making "good progress" in talks with the Justice Department on a planned merger with Virgin America Inc VA.O , an Alaska spokeswoman said on Friday. Hedge fund manager D.E. Shaw and Co said it may make a non-binding proposal for SunEdison Inc's SUNEQ.PK stake in Terraform Power Inc TERP.O , according to a regulatory filing on Friday. India and Russia on Saturday signed a deal to pave the way for a group led by Russian oil major Rosneft ROSN.MM to acquire India's Essar Oil ESRO.CL . Poland's largest insurer, state-run PZU PZU.WA , said on Saturday it has started negotiations with Italy's banking group Unicredit CRDI.MI over buying the lender's Polish unit Bank Pekao PEO.WA . Banca Popolare di Milano's (BPM) PMII.MI shareholders approved a planned merger with Banco Popolare BAPO.MI on Saturday, giving the final green light to the creation of Italy's third-largest bank. Tesla Motors Inc TSLA.O said it would collaborate with Panasonic Corp 6752.T to manufacture solar cells and modules in Buffalo, New York. Leading German car industry manufacturer Continental AG CONG.DE on Saturday announced it had bought Hornschuch, a maker of films, foam laminates and artificial leather for cars and other applications, to help it expand into other industry sectors. Mentor Graphics Corp MENT.O , a company that makes software for designing semiconductors, is working with Bank of America Corp (NYSE: BAC ) BAC.N to explore strategic alternatives, including a potential sale, according to people familiar with the matter. South Africa's Steinhoff International SNHG.DE plans to buy Fantastic Holdings FAN.AX for 361 million Australian dollars ($274 million), the Sydney-based retailer said on Friday. SSE Plc SSE.L , Britain's second biggest energy supplier, said it had agreed to sell a 16.7 percent stake in regional gas distribution business Scotia Gas Networks Ltd (SGN) to Abu Dhabi Investment Authority for 621 million pounds ($772.21 million). PSA Group PEUP.PA , the maker of Peugeot , Citroen and DS cars, said on Monday it was buying a stake in a French online second-hand car retailer as it expands into new areas of business. Financial and commodity markets operator Intercontinental Exchange Inc ICE.N will have to sell commodities trading software house Trayport to preserve competition, Britain's competition watchdog said on Monday. Czech energy group EPH agreed to sell a 30 percent stake in its EP Infrastructure (EPIF) unit to an investor group led by Macquarie Infrastructure and Real Assets, EPH said on Monday. Malaysia's second-biggest lender CIMB Group Holdings Bhd CIMB.KL said on Monday it is in talks with China Galaxy Securities Co Ltd 6881.HK on setting up a joint venture partnership in the stockbroking business.