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Bloomberg reported 5/31 in an article by Simon Casey that Falconbridge Ltd had rejected Xstrada's hostile acquisition offer.  Falconbridge is recommending Inco's friendly offer.  Management states that they do not believe Xstrada's offer to be superior.

Inco in turn has an offer for acquisition from Teck Cominco contingent on Inco dropping its bid for Falconbridge.

The ball is back in Xstrada's court.  Will they up their offer?

From a bond analyst point of view, the best outcome would be for Inco to drop their bid and be acquired by Teck Cominco, and for Xstrada to acquire Falconbridge.  Everyone would likely remain investment grade.  I believe an Inco/Falconbridge merger would fall to below investment grade (high yield or junk) status.