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Telecom Italia shares extend losses amid capital hike talk

A Telecom Italia phone booth is pictured in front of St Peter's Basilica in Rome September 24, 2013. REUTERS/Alessandro Bianchi

MILAN (Reuters) - Shares in Telecom Italia accelerated losses on Friday afternoon after a report said the debt-laden company might propose a rights issue for up to 2 billion euros ($2.8 billion).

"The stock is extending losses on the report," a trader said. "If they have to do a capital hike, 2 billion euros is a bit on the small side and would not guarantee they might have to launch another one."

Bloomberg reported on Friday that Telecom Italia was considering a plan to raise 1.5-2 billion euros from existing shareholders including Spain's Telefonica.

Telecom Italia was not immediately reachable for comment.

(Reporting by Stefano Rebaudo, editing by Danilo Masoni)