LONDON, Feb 8 (Reuters) - British retailer DSG International is considering a rights issue, the Sunday Telegraph reported, citing unnamed sources close to the company.
The Telegraph said DSG, owner of electrical goods chains Currys and PC World in the UK, had begun preparations to raise "hundreds of millions of pounds" in a cash call.
However, the company will not decide whether to proceed until after it has finished talks on the disposal of some overseas subsidiaries, likely to be several months away, the paper said.
DSG could not immediately be reached for comment.
The company, Europe's second-biggest electrical goods retailer, has been hit hard as indebted shoppers cut back spending amid rising unemployment and sliding house prices.
Last month, DSG reported a 10 percent fall in sales at stores open at least a year for the 12 weeks to Jan. 10.
DSG shares closed at 22.5 pence on Friday, valuing the group at about 470 million pounds ($689.2 million).
(Reporting by Myles Neligan; editing by Elaine Hardcastle)