North American stocks are poised to rise Wednesday, as mergers-and-acquisition activity heats up in the metals sector.

Late Tuesday, Canadian aluminum producer Alcan recommended that shareholders reject the US$27.41 billion takeover bid by U.S.-based rival Alcoa, calling it inadequate and setting the stage for further showdowns.

Also, Russia’s Norilsk Nickel launched a new $6.8 billion offer for Canadian miner LionOre Mining International, topping an offer from Xstrata by 10%.

In other M&A news, discount shoe retailer Payless ShoeSource said it would buy Stride Rite for $800 million, in a bid to move upmarket.

Crescent Real Estate Equities agreed to be acquired by a unit of Morgan Stanley for about US$6.5 billion including debt, a small premium to its trading price.

In earnings news, Analog Devices reported a 14% profit decline and said current quarter earnings will be below market estimates.

Bank of Montreal reports second quarter earnings later today.

There are a number of U.S. retailers due to report quarterly results, including Target, Dillard’s, Abercrombie & Fitch Co and Limited Brands. CA and Network Appliance also are due to report quarterly results.

In Canadian economic news, Statistics Canada said the leading indicator rose 0.4% in April, matching its increase in March as well as its average gain in 2006.

Household spending slowed from its recent torrid pace, while manufacturing continued to recover from a prolonged slump, the government agency said.

The Canadian dollar opened at US92.12¢, up 0.04 of a cent. On Tuesday, the loonie had moved up 0.29 of a cent to US92.08¢ — its highest close since October 1977.

Crude-oil futures rose 21¢ to US$65.72 a barrel ahead of weekly energy inventory data, which will be closely watched as gasoline prices climb before the summer driving season.

Overseas, the Nikkei 225 in Tokyo ended with a 0.1% gain.

Toronto stocks moved marginally higher Tuesday, with both the energy and financials indexes staying essentially flat. Meanwhile strength in the information technology and utilities sectors offset weakness in materials.

The S&P/TSX composite index gained 6.85 points, or 0.05%, to 14,112.19.

The S&P.TSX Venture composite index fell 4.92 points, or 0.15%, to 3,274.68.

In New York, markets were mixed as investors consolidated gains, but remained optimistic about the continued strength of the economy.

The Dow Jones industrial average slipped 2.93 points, or 0.02%, to 13,539.95, the Nasdaq gained 9.23, or 0.36%, to 2,588.02, and the S&P500 dipped 0.98, or 0.06%, to 1,524.12.