Corporate deals will be front and center today as we kick off the week on a positive footing with Wall Street rising on Friday night ahead of the US interest rate decision at the end of the week and as iron ore gained for the fourth consecutive day.
The futures market is pricing in a 0.5% rise for the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) this morning and our miners should find support from the 1.4% rally in the iron ore price to $US59.01 a tonne and a 0.3% advance for copper to $US2.4535 a pound.
Rio Tinto Limited's (ASX: RIO) chief executive is predicting that the global copper surplus will diminish within two years and that a deficit was looming, although he wouldn't say when the shortfall might occur.
However, a 2.8% drop in the West Texas Intermediate oil price to $US44.63 will weigh on the energy sector after Goldman Sachs warned that the oil price could fall to $US20 a barrel.
But falling oil prices won't be the only thing on investors' minds. Oil Search Limited (ASX: OSH) has formally rejected Woodside Petroleum Limited's (ASX: WPL) all-scrip takeover offer this morning and has cancelled a meeting with its suitor.
The courtship isn't over though as Oil Search said it is leaving the door open to an improved offer and shareholders will be hoping to see a competing bid emerge.
Santos Ltd (ASX: STO) will be sharing the spotlight too after The Australian reported that the debt-laden energy company is in talks with an unnamed oil & gas major to sell its Papua New Guinea (PNG) assets.
The news may not necessarily please shareholders as its PNG gas assets are regarded as its crown jewels.
But corporate activity isn't confined to the energy sector. Property group Stockland Corporation Ltd (ASX: SGP) is considering divesting its retirement arm via an initial public offer that could value the spinoff at $1.1 billion, according to The Australian.
Fellow property developer Aspen Group Limited (ASX: APZ) announced this morning that it will merge with Aspen Parks Property Fund to become the leading accommodation parks manager and developer with a portfolio of 25 properties valued at $241 million, or around twice the market cap of Aspen Group.
Commercial real estate company DEXUS Property Group (ASX: DXS) will also be in focus after the Australian Financial Review said it was in talks to buy a $400 million site in Sydney.
Meanwhile, mortgage and consumer loan broker Pepper Group Ltd (ASX: PEP) is looking for a partner to join the auction for Australia and New Zealand Banking Group's (ASX: ANZ) Esanda business, according to the AFR; while Bloomberg reports that shipbuilder Austal Limited (ASX: ASB) is looking to secure a $232 million syndicate financing facility. It is unclear what Austal plans to do with the cash.
Finally, today is the last day to buy funeral services group InvoCare Limited (ASX: IVC) for its fully franked 15.75 cent a share dividend and wealth manager Equity Trustees Ltd (ASX; EQT) will also trade without its fully franked 48 cents dividend entitlement tomorrow.
