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* Swisscom buys Vodafone Italia in $8.7 billion dealVonovia posts record $7.35 billion loss amid property crisis

* French Feb inflation slightly above expectations

* LPP's shares tumble after Hindenburg report

March 15 (Reuters) - European shares inched lower on Friday, as the strength in telecommunications sector was offset by a sell-off in global equities after hotter than expected inflation figures from the U.S. hurt June rate-cut bets.

The pan-European STOXX 600 index was down 0.1%, as of 9:17 GMT, but looked set for its eighth consecutive week of gains.

The index scaled a fresh record high in three of the five sessions this week, supported by an array of upbeat corporate updates and expectations of an interest rate cut from the European Central Bank in June.

Market participants are drawing relief from the recent slowdown in inflation in the euro zone, while remaining focused on upcoming economic data that could alter the rate-cut bets, as in the case of U.S.

Thursday's heated U.S. producer price numbers followed consensus-topping consumer inflation in the world's largest economy, eroding expectations of a June Fed rate cut.

"Markets are bearish today as equity bulls fail to conquer another hotter-than-expected inflation report this week," Jose Torres, Senior Economist at Interactive Brokers said in a note.

"Investors are now thinking that rate relief may arrive in July rather than June, with expectations nearing coin-flip odds for the earlier month".

Rate-sensitive real estate index led losses with a 1.4% decline on Friday.

The index was also weighed down by a 7.2% decline in Vonovia shares. Germany's largest landlord reported its biggest loss ever in 2023 following further writedowns on the values of its properties.

Among others, Swisscom shares gained 1.9% after the telecom company said it will buy Vodafone Italia for 8 billion euros ($8.7 billion) and merge the business with its Italian subsidiary Fastweb. Vodafone shares jumped 4%, and the broader telecommunications index led sectoral gains with a 0.9% rise.

Galp climbed 6.8% to the top of STOXX 600 after the Portuguese oil and gas firm said a consortium it leads had found a "significant" column with light oil in the Mopane-2X well in Namibia.

On the contrary, Polish fashion group LPP shares bottomed the STOXX 600, falling nearly 25% after Hindenburg Research published a report alleging the firm's sale of its Russian assets was fake.

Meanwhile, data showed consumer prices in France rose slightly more than initially expected year-on-year in February, while Italian EU-harmonised consumer prices were up 0.8% in February from the year earlier.

Later in the day, investors will be on the look out for U.S. industrial production data for the month of February. (Reporting by Khushi Singh in Bengaluru; Editing by Dhanya Ann Thoppil and Mrigank Dhaniwala)