Devoted to understanding the basics and fundamentals of investing

A lot of company executives, lawyers and bankers were busy over the weekend.  Phelps Dodge, Inco and Falconbridge all agreed to merge.  It will create the largest Nickel and one of the largest copper companies in the world.  You will recall Inco was trying to buy Falconbridge in competition with Xstrata.  Since Xstrata owns 20% of Falconbridge, they look to pocket $4 billion on the deal. 

All the rating agencies are putting the companies involved in the deal on credit watch to see how the numbers will come out on debt, leverage, debt servicing ability and cash flow.  My guess is they will remain just barely investment grade.

Johnson and Johnson agreed to buy the consumer products division of Pfizer for $16 billion.  They expect to close the deal by year end.  It gives Pfizer money for acquisitions so I don't think this saga is over yet.  This looks expensive, but will probably be good for both companies.