CORRECTED-European shares extend fall on Portugal woes, Italy data

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European shares extended losses on Thursday, weighed down by heavy falls in southern indexes after weak economic data from Italy and mounting concern about the financial health of Portugal's largest listed bank.

Lisbon's PSI Index fell 3 percent by 0910 GMT, lagging all other European benchmarks, after shares and bonds of the chief shareholder in Banco Espirito Santo were suspended over "material difficulties" at its parent company ESI.

Italy's FTSE MIB fell 1.7 percent after data showed Italian industrial output posted its steepest monthly decline since November 2012, casting doubts over the country's economic recovery.

The pan-European FTSEurofirst 300 was down 0.9 percent at 1,351.67 points, having sharply extended early losses. (Reporting By Francesco Canepa; Editing by Lionel Laurent)

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