By James Langton

(July 10 – 09:00 ET) – There’s no major economic data out today. Fed chair Alan Greenspan has a couple of speeches later this week, earnings season starts and there’s some important economic data due out at the end of the week. All this is capturing traders’ attention.

The big news this morning is the proposed US$41 billion buyout of SDL Inc. by Ottawa’s JDS Uniphase Corp. The deal would be the largest technology acquisition ever, and is substantially bigger than the proposed bank mergers of 1998.

Under the terms of the deal, SDL shareholders will receive 3.8 JDS shares for each SDL share, or US$441.51, almost a 50% premium. It carries a US$1 billion breakup fee. SDL is a JDS supplier and this deal is designed to give it the technology to build parts for communications networks. Shares of JDS are pointing down in pre-market trading. CIBC World Markets and Bank of America Securities advised JDS on the deal.

Another deal in Canada this morning comes with Domtar Inc.’s deal for Ris Paper Company Inc. Ris is one of the largest independent merchants of commercial printing and business papers in the U.S., headquartered in Florence, Ky. The total value of the transaction is US$90 million, which includes assumption of debt, issuance of Domtar common shares and cash. The transaction is expected to close by the end of July.

In Europe stocks are mostly directionless. London’s FTSE is unchanged at 6,497. France’s CAC 40 is off 24 points to 6,541. Germany’s DAX is up 19 points to 7,071.

Crude oil prices have fallen another 1% on news that Venezuela and Nigeria are supporting the Saudi’s production increases. Expectations are that OPEC may follow suit.

In other merger news Johnson Controls Inc. will buy Nissan Motor Co.’s Ikeda Bussan unit for US$185 million in cash and debt. Switzerland’s SWX stock exchange is buying a 38% stake in Tradepoint Financial Networks Plc to create a blue chip electronic exchange.

Dresdner Bank AG and Commerzbank AG are still talking up a deal that would see them create a financial holding company with separate units for their combined retail banking, investment banking and asset management businesses.

In Asia markets closed up overnight on the heels of the positive inflation data in the U.S. last Friday. The Nikkei added 174 points to 17,572. The Hang Seng was strong, packing on 408 points to 17,238.