North American markets look ready to climb Monday morning, lifted by news of Verizon Communications’ planned takeover of MCI.

Verizon announced today it will acquire MCI for US$6.75 billion in cash, shares and dividends. The two companies said Verizon will pay US$4.8 billion in stock and $US488 million in cash under the deal.

MCI also said Monday that its revenue fell 10% in the latest quarter.

In other business news, General Motors agreed to pay US$1.99 billion to Fiat to bring their alliance to an end. Under the deal reached Sunday, Fiat is giving up its right to force GM to buy the 90% of the Italian auto unit that it doesn’t already own.

U.S. insurance giant American International Group said Monday it received subpoenas from the New York attorney general and the U.S. Securities and Exchange Commission. In a news release, AIG said the subpoenas relate to investigations of non-traditional insurance products and assumed reinsurance transactions.

In economic news, Statistics Canada said Canadian manufacturers saw finished-product inventories climb to a record high in December as unfilled orders weakened steadily. Conversely, new orders advanced 0.4% to $49.9 billion, the first increase since July.

In its monthly survey of manufacturing, StatsCan said manufacturing shipments slipped 0.2% to $50.1 billion in December; however, the decline was driven by falling petroleum prices.

Separately, the government agency said new motor vehicles sales declined 3.1% in December after falling in November, too. As in 2003, incentives were not enough to spur sales which fell for a second consecutive year.

After reaching a record high in 2002, new motor vehicle sales registered their second consecutive year-over-year decline in 2004.

StatsCan said new motor vehicle dealers sold 1,575,242 units in 2004, down 3.1% from 2003 and the lowest level since 1999. The drop in sales occurred despite various incentive programs.

On Friday, Toronto stocks rallied to their highest close in more than four years. The S&P/TSX composite index closed up 62.14 points, or 0.65%, at 9,558.50, its highest finish since December 2000.

The index gained 2.1% on the week.

The junior S&P/TSX Venture composite index surged ahead 35.28 points, or 1,9%, to 1,887.43.

In New York, the Dow Jones industrial average moved into positive territory for the year on Friday as investors piled back into the market.

The Dow Jones industrial average rose 46.40, or 0.43%, to 10,796.01, after gaining 85.50 on Thursday.

Broader stock indicators also moved higher. The S&P 500 index rose up 8.29, or 0.69%, at 1,205.30, and the tech-heavy Nasdaq composite index gained 23.56, or 1.15%, to 2,076.66.

For the week, the Dow rose 0.75% and the S&P climbed 0.19%, while the Nasdaq fell 0.48%.