Stocks are poised to open mixed Friday amid a batch of merger activity and and strong U.S. retail sales.

In M&A news, Brazil’s CVRD, the world’s largest iron-ore producer, is making a $17 billion all-cash offer for Canada’s Inco Ltd., trying to edge out two competing bids.

Rio de Janeiro-based Cia. Vale do Rio Doce said Friday it will offer $86 a share for Inco, the world’s second-largest nickel producer.

Intrawest Corp. said it is backing a US$2.8 billion takeover offer announced by Fortress Investment Group LLC. Fortress has agreed to pay US$35 a share in cash and assume Intrawest debt.

In today’s economic news, U.S. retail sales rose a seasonally adjusted 1.4% in July, above expectations, in a signal of economic strength. Consumers snapped up discounted cars, pumped expensive gas, and ducked into shopping malls to escape broiling summer heat.

Separately, the U.S. Labor Department said July import prices increased 0.9% due to rising energy prices. Economists had expected import prices would rise by 1% last month.

There are no major economic releases from Statistics Canada today.

The Canadian dollar opened at US88.75¢, down 0.04 of a cent.

Crude-oil prices rose 48¢ to US$74.48 a barrel as markets reconsidered expectations of lower jet-fuel demand and weaker consumer confidence due to the thwarted trans-Atlantic airplane attacks.

In earnings news, Air Canada parent ACE Aviation Holdings Inc. said its second-quarter profit rose 40% to $236 million, from a year-earlier $169 million, on major one-time gains.

In overseas trading, European indexes were mixed.

Asian markets closed mixed Friday, with the benchmark Nikkei 225 index dipped 65.89 points, or 0.42%, to close at 15,565.02 points on the Tokyo Stock Exchange.

In Hong Kong, the blue-chip Hang Seng Index rose 27.81 points, or 0.2%, to 17,249.9.

Toronto stocks closed lower Thursday as oil prices fell in the wake of a foiled terrorist plot in the United Kingdom.

The S&P/TSX composite was down 49.1 points, or 0.4%, to 11,959.05.

Energy stocks fell 1%.

Crude-oil prices retreated on worries that the scheme to blow up airliners flying between Britain and the U.S. could end up cutting passenger travel, which would curtail demand for aviation fuel.

Airline stocks also fell sharply following the U.K. reports, but many had recovered by the close.

Air Canada parent Ace Aviation Holdings moved up 86¢ to $27.90, while WestJet was down 19¢ to $9.77.

Shares of Imax Corp. fell by more than 40% Thursday after Canada’s wide-screen filmmaker announced it was being investigated by U.S. regulators.

The markets were responding to a company announcement that the U.S. Securities and Exchange Commission and Ontario Securities Commission were investigating questionable disclosures in late 2005 that involved 10 new planned theatres.

The TSX Venture composite index dipped 16.93 points, or 0.64%, to 2,632.24.

On Wall Street, the Dow Jones industrial index was up 48.19 points, 0.44%, to 11,124.37. The Nasdaq composite index rose 11.46 points, or 0.56%, to 2,071.74, while the S&P 500 index added 5.86 points, or 0.46%, to 1,271.81.