Yahoo (YHOO.O) will be in the spotlight after co-founder Jerry Yang quit the company he started in 1995, appeasing shareholders who had blasted the internet pioneer for pursuing an ineffective personal vision and impeding investment deals that could have transformed the company.

Shares in the company traded in Frankfurt (YHOO.F) rose 2.1 percent.

European shares .FTEU3 turned flat in morning session after opening lower, with traders citing media reports the International Monetary Fund would boost its lending facility, as the region battles a long-running debt crisis.

Greece goes head to head with its creditors on Wednesday in a renewed attempt to break a deadlock in negotiations to slash the country's debt and stave off default.

U.S. 10-year Treasuries were little changed in Asia on Wednesday and were seen likely to be supported on dips, with the euro zone's sovereign debt crisis helping to bolster the safe haven appeal of U.S. debt.

Prudential Financial Inc (PRU.N), the No.2 U.S. life insurer, and Korea Life Insurance (088350.KS) plan to submit separate initial bids for a controlling stake in Tong Yang Life Insurance (082640.KS), sources familiar with the matter said on Wednesday.

Chipmaker Linear Technology Corp (LLTC.O) posted quarterly revenue modestly above Wall Street estimates and forecast strong third-quarter sales on improving bookings, sending its shares up 8 percent after market.

Majesco Entertainment Co's (COOL.O) fourth-quarter results came in below market expectations, and the video game publisher forecast a weak 2012 as it expects higher selling and marketing costs and negligible revenue from its social and mobile games business.

BB&T Corp (BBT.N) and the TD Bank unit of Canada's Toronto-Dominion Bank (TD.TO) have submitted preliminary bids to buy BankUnited Inc (BKU.N), the Wall Street Journal reported, citing people familiar with the matter.

On the macro front, investors awaited December's Producer Price Index, industrial production and capacity utilization data, as well as the National Association of Home Builders/Wells Fargo's January housing market index.

On the earnings front, a raft of companies were due to report results, including Goldman Sachs (GS.N), eBay Inc

(EBAY.O), Bank Of New York Mellon Corp (BK.N), State Street Corp (STT.N) and Charles Schwab Corp (SCHW.N).

U.S. stocks advanced on Tuesday, pushing the S&P 500 to its highest since early August, but sharply pared gains late in the session as Citigroup's steep drop in profit gave investors a reason to unload bank shares.

The Dow Jones industrial average .DJI rose 60.01 points, or 0.48 percent, to 12,482.07 at the close. The Standard & Poor's 500 Index .SPX added 4.58 points, or 0.36 percent, to 1,293.67. The Nasdaq Composite Index .IXIC gained 17.41 points, or 0.64 percent, to 2,728.08.

(Reporting by Blaise Robinson. Editing by Jane Merriman)

• A Permanent Economic Emergency