NEW YORK(TheStreet) -- Bank of Montreal's agreement on Friday to take over Marshall & Ilsley Corp. for a 34% premium to Thursday's closing price illustrates just how hot the market is getting for regional M&A. If you consider that the acquirer will have to pay the government $1.7 billion to settle M&I's bailout bill, some of the coming M&A deals will fetch even higher premiums. "This is really an interesting deal that may play out into the way people evaluate fair values to loans," said Chip MacDonald, a partner at Jones Day.