Stocks are expected to climb at the open Monday amid a flurry of merger activity and a decline in crude-oil prices.

Barrick Gold Corp., Canada’s biggest gold company, is offering US$9.2 billion in stock and cash, or $10.8 billion Cdn, for rival Placer Dome Inc. of Vancouver.

In a separate but related agreement, certain Placer Dome assets and interest in a development project would be sold to Goldcorp Inc. for about US$1.35 billion or $1.59 billion Cdn in cash, Toronto-based Barrick announced today.

On Friday, Barrick reported earnings of US$113 million in the third quarter, up more than 250% from the same period last year. Its shares gained 88¢, or 3.34%, to $27.20.

Overseas, Spain’s Telefonica announced at US$31.39 billion for British mobile phone operator O2. O2 shares rose above the agreed price of 200 pence a share on market hopes that another European telecommunications firm, possibly Deutsche Telekom, may lodge a higher bid.

Swiss drugmaker Novartis AG said Monday it will buy all the remaining publicly held shares in embattled biotechnology company Chiron Corp. for US$5.1 billion.

Oil prices slipped 69¢ to US$60.53 a barrel in early trading Monday, as the Organization of Petroleum Exporting Countries said it has “more than adequate” spare capacity to cover expected global demand this winter.

In economic news, Statistics Canada said the economy advanced by 0.5% in August, after 0.2% gain in July.

The agency says the economy grew by 2.7% between August last year and August this year.

South of the border, the U.S. Commerce Department said today that September personal income rose at a seasonally adjusted annual rate of 1.7%, after falling a revised 0.9% in August. September personal consumption grew 0.5%, after an unrevised 0.5% drop the month before. Economists called for a 0.4% increase in personal income and a 0.6% increase in consumer spending.

In overseas markets, Japan’s Nikkei 225 ended 2% higher at 13606.50 following upbeat domestic earnings. In London, the FTSE 100 was up 1.6% recently.

Toronto stocks ended higher Friday, as the markets absorbed higher U.S. GDP numbers and news that Canada’s oldest retailer head received a $1 billion bid.

The S&P/TSX composite index finished up 66.85, or 0.65%, to 10,312.30.

For the week, the benchmark index gained 21.43 points.

U.S. businessman Jerry Zucker, the largest shareholder of Hudson’s Bay Co., made a $1-billion offer for the retail giant. Its shares surged ahead $2.72, or 21.54%, to $15.35.

The junior S&P/TSX Venture composite index finished up 3.96, or 0.20%, to 1,996.53.

In New York, strong economic news and strong corporate results from Microsoft. U.S. gross domestic product increased 3.8% in the third quarter, above analysts’ expectations.

The Dow Jones industrial average shot up 172.82 points, or 1.7%, to 10,402.77. The Nasdaq composite gained 26.07 points, or 1.3%, to 2,089.88 and the S&P 500 rose 19.51 points, or 1.7%, to 1,198.41.