North American stock futures edged higher Monday, supported by a giant deal in the oil-drilling sector and better-than-forecast results from pharmaceutical maker Schering-Plough.

Transocean and GlobalSantaFe have agreed to a merger in the oil-drilling sector among firms with a combined market capitalization of US$48 billion. The deal, set to close by year-end, also includes shareholders of both companies getting US$15 billion through a recapitalization that will reduce the size of shareholders’ current stakes in the firms.

Schering-Plough’s second-quarter profit more than doubled, as results continued to be boosted by the company’s cholesterol joint venture and sales of allergy and arthritis drugs.

In other M&A news, Barclays increased its offer for ABN Amro Holding to US$93 billion, added cash to it and agreed to sell up to 19% of itself to the governments of China and Singapore.

Australian construction and property company Multiplex Group formally recommended investors accept Canadian Brookfield Asset Management Inc.’s $3.74 billion takeover bid after an independent valuation released Monday found it was fair.

In earnings news, Merck’s second-quarter net income rose 12%. The drug maker raised its 2007 earnings outlook, after several quarters of double-digit declines in profit.

Monday’s earnings calendar includes American Express and results from semiconductor maker Texas Instruments due out after the close of trade.

There are no major economic releases from Canada or the United States today.

The Canadian dollar opened at US95.67¢, up 0.3 of a cent.

Crude-oil futures gave up some recent gains, falling 31¢ to US$75.48 a barrel. Gold futures were down US$1 at US$683.70 an ounce.

Overseas, the FTSE 100 recently rose 0.4%, helped by takeover speculation in the insurance sector on news that Friends Provident and Resolution were considering a US$17 billion merger.

The Nikkei 225 dropped 1.1% in Japan to close at a three-week low.

Toronto stocks closed lower Friday as a big drop in Biovail combined with sagging tech and industrial issues.

The S&P/TSX composite index closed down 42.89 points, or 0.3%, at 14,582.87.

The benchmark gained 0.6% on the week.

Biovail plunged $5.64, or 21.2%, to $20.95 after it said the U.S. Food and Drug Administration has rejected its new drug application for antidepressant bupropion.

The junior S&P/TSX Venture composite index edged up 6.87 points to 3,325.86.

U.S. stocks tumbled on Friday, battered by disappointing results from such bellwethers as Caterpillar and Google.

The Dow Jones industrial average fell 149.33 points, or 1.07%, to end at 13,851.08. The S&P lost 18.98 points, or 1.22%, to finish at 1,534.10. The Nasdaq composite index dropped 32.44 points, or 1.19%, to close at 2,687.60.

The Dow ended the week down 0.4%, the S&P fell 1.2%, and the Nasdaq skidded 0.7%.