Toronto stocks were flat Monday morning following last week’s 2% rise. At midday, the S&P/TSX composite index was off 7.98 points, or 0.08%, at 9,550.52. Volume was 144 million shares.

Only three of the 10 TSX’s 10 groups were higher: telecommunications, energy and industrials.

The telecoms group led the index with a gain of 0.63%. The sector rose on news that Verizon Communications Inc. said it would buy U.S. long-distance telephone company MCI Communications Inc. in a deal worth US$6.75 billion, giving Verizon entry into the market serving large corporations.

In earnings news, George Weston reported a fourth-quarter loss, partly because of an impairment charges and restructuring costs.

Weston shares fell $2.72, or 2.37%, to $112.1y.

Brascan reported a weaker fourth-quarter profit on Monday, but raised its quarterly dividend by 7%.

Brascan shares dipped 84¢, or 1.83%, to $45.15.

The junior S&P/TSX Venture composite index inched up 0.31 of a point to 1,887.74.

In New Yori, blue chip stocks edged lower on Monday as regulatory concerns at giant insurer American International Group overshadowed Verizon’s move to buy MCI

AIG shares fell 3% after it said it received new subpoenas from New York Attorney General Eliot Spitzer and the U.S. Securities and Exchange Commission related to insurance products that might have helped companies smooth earnings.

At midday, The Dow Jones industrial average was down 16.33 points, or 0.15%, at 10,779.68. The S&P 500 Index was down 1.03 points, or 0.09%, at 1,204.27. The Nasdaq composite index was up 2.93 points, or 0.14%, at 2,079.59.