The so-called “mid-market”, of mergers and acquisitions (M&A) valued at less than $500 million, is showing tentative signs of life.

On an initial reading, first-half deal data from Thomson Reuters suggests a market still struggling, with deals down 45.7 percent from a year earlier in dollar terms, to $213.3 billion. But on closer inspection, the second quarter reveals itself to have been busier than the first, and in fact home to a stronger rebound than the overall M&A market.

Granted, second-quarter M&A plunged 43 percent in dollar terms and 12 percent by number of deals, compared to the same period a year earlier. But compared to the first quarter, the number of deals actually rose 4 percent, while the dollar value of deals struck bounced 20 percent. (In the wider M&A market, the number of deals rose quarter-on-quarter by a similar amount, but dollar values fell 2 percent.)

So what’s going on? Corporate confidence may well have been lifted by big stock-market rallies starting in March, as the worst fears about the crisis have receded. And perhaps for bigger companies, the mid-market is where they can acquire bite-sized rivals without depending on the big bank loans that are now so hard to come by.

Alternatively, the light at the end of the tunnel may just be a gleam of summer sun: midmarket deals, measured by both deal numbers and dollar value, also bounced in the second quarters of both 2007 and 2008, compared to the first quarter of those years.

Among advisers, JPMorgan was the first half’s busiest mid-market adviser by value, UBS the busiest by number of deals, and Rothschild no.1 by estimated fees.

If only the fiber-optic cable wires beneath Sergey Aleynikov’s home could talk.

Aleynikov, the former Goldman Sachs computer programmer accused of stealing the firm’s secret codes, appears to have packed up with his wife and three daughters and left his home in North Caldwell, New Jersey, for at least the weekend.

On a sunny Sunday afternoon, the house was silent, except for a deer seen running nearby. A thick stack of mail sat in the mailbox, where a Reuters News reporter left a business card.

Aleynikov’s home sits at the foot of a hill in an exclusive street off Mountain Avenue, where homes are listed in the $1.5 million range.

One resident, outside playing catch with his dog, wasn’t interested in talking about his now-famous neighbor, who is facing federal theft charges stemming from the alleged theft.

“Leave the guy alone,” the neighbor said.

The home where Aleynikov lives is one of 23 “luxury” estates known as “The Estates at Hilltop.” According to the web site for the for KHovnanian Homes, the builder, the homes are being built on three-quarters to one acre, surrounded by 280 acres of preserved open space.

Aleynikov’s home is on the first lot in the development, where some of the towering homes appeared to still be under construction or vacant.

The computer programmer’s lawn was perfectly landscaped and two garbage bins sat outside near the garage.

According to the complaint filed against Aleynikov, he was paid $400,000 by Goldman Sachs, but stood to see his salary tripled in his new position with Teza Technologies LLC, a Chicago-start-up.

The owner is listed as K. Hovnanian at North Caldwell II, according to Essex County property records.

A federal judge has agreed to delay the UBS tax-evasion trial as the U.S. and the Swiss seek a resolution. UBS shares gained strongly on the presumption that a delay was near.

A source familiar with the situation told Reuters the talks, now led by the U.S. and Swiss governments, were aimed at finding a way to allow the bank to transfer client data without breaching Swiss law. No doubt the discussions, and perhaps even the nature of a settlement, will be murky.

That a settlement is being sought may be a short-sighted reason to buy UBS stock. Without its precious secrecy to define it, Swiss banking would lose the standing that has made it the wealth-management center of the world. The fact that the two sides are talking may indicate Washington is willing to accept less than unconditional surrender. But make no mistake: Settlement means less secrecy, not more. While a settlement would help the bank with this particular mess, it could have an added sting in the form of a payment from UBS to the U.S. government.

Longer term, tax lawyers say European governments, which are also trying to recoup unpaid tax money from offshore banks, could also put pressure on Switzerland as a global fight against tax cheats gathers pace.

Suntory and Kirin consider joining forces to create one of the world’s biggest beer and soft drinks companies, with annual sales of $41 billion. Meanwhile Friends Provident and Venture Production are both fending off unwanted approaches. For all the latest deals news, click here.

And here’s the latest dose of market chatter:

* McGraw-Hill has hired Evercore Partners Inc, a top U.S. merger advisory boutique to sell BusinessWeek magazine, Bloomberg said, citing a person close to the situation.

* Bank of America Corp is trying to avoid paying billions of dollars in fees to U.S. taxpayers for guarantees against losses at Merrill Lynch, saying the rescue agreement was never signed and the funding never used, Bloomberg said, citing people familiar with the matter.

* British Airways is ready to accept close to a 50-50 ownership deal for a merger with Iberia, Spanish newspaper El Economista said, citing sources close to the talks.

* A private equity fund launched by the former chief of India’s ICICI Venture plans to raise about $500 million, the Economic Times newspaper said.

* Microsoft Corp is pitching to five of the world’s biggest advertising companies a deal to buy Razorfish, its digital ad agency, the Wall Street Journal said on Sunday, citing executives familiar with the situation.

* State-owned National Aviation Co of India Ltd (Nacil), which operates Air India, is raising about $1 billion from JPMorgan Chase & Co to fund its fleet expansion programme, Indian newspaper the Mint said.