* To issue 1.6 bln shares at 42 pence apiece

* Half to be sold via placing, half via open offer

* UK print operations lift first-half results

* Share gains fall back to 2 percent

(Adds banker comment, updates shares)

By Georgina Prodhan

LONDON, Nov 10 (Reuters) - Struggling British yellow-pages publisher Yell Group Plc (YELL.L: Quote, Profile, Research) set out the last stage of a protracted refinancing on Tuesday with a larger-than-expected fully underwritten share issue.

Taking advantage of renewed market appetite for equity, Yell said it would sell 659 million pounds ($1.1 billion) worth of stock, raising a net 574 million after expenses to pay down some of its 4 billion pound debt pile.

Yell joins a growing list of companies such as transport group National Express Plc (NEX.L: Quote, Profile, Research) and electronics group Laird Plc (LRD.L: Quote, Profile, Research) which have said in recent weeks they are issuing equity to cut their debts.