* FTSEurofirst 300 index flat

* BA, Iberia higher on merger talks

* Telcos up; TeliaSonera, BT Group rise

By Brian Gorman

LONDON, Nov 12 (Reuters) - European shares were flat at midday on Thursday, with telecom companies boosted by upbeat results and merger news, and euro zone output data suggesting economic recovery is on track, but with banks and miners lower.

At 1145 GMT, the FTSEurofirst 300 index of top European shares was flat at 1,014.09 points.

On Wednesday, the index hit its highest close in three weeks and is up more than 57 percent from its lifetime low of March 9, as investors have become more confident on the prospects for economic recovery.

"We think the upwards trend for equity markets is fully on track," said Tammo Greetfeld, equity strategist at Unicredit Group.