UPDATE 1-Outokumpu offers Italian plant sale to get Inoxum

* EU Commission reviewing Inoxum acquisition

* Commission indicated sale of Swedish intestests not sufficient

* Shares fall some 3 pct

(Adds share reaction, CEO quote, background)

HELSINKI, Oct 1 (Reuters) - Finnish stainless steel maker Outokumpu has proposed selling a mill in Terni, Italy, to win approval for its 2.7 billion euro ($3.5 billion) deal to acquire ThyssenKrupp's Inoxum unit, after regulators said its plan to sell its Swedish operations was insufficient.

News of more complications for the planned deal, which would create the world's top stainless steel producer, sent Outokumpus shares down 3.4 percent in early trade.

Outokumpu said that instead of its earlier plan to sell its Swedish melting and coil operations, it is now proposing that the joint company would sell the Terni plant, considered one of the most advanced steel mills in Europe.

"We're confident that we'll find a solution that will enable us to move forward with the transaction." Outokumpu's chief executive Mika Seitovirta said in a statement.

The acquisition would help Outokumpu to deal with overcapacity and price competition from Asia. It is currently the fourth-biggest stainless steel maker in Europe where rivals include Acerinox and Aperam .

The Commission is due to rule on the acquisition by Nov 16. ($1=0.7773 euros) ($1 = 0.7773 euros)

(Reporting by Terhi Kinnunen; Editing by David Holmes and Greg Mahlich)

((terhi.kinnunen@thomsonreuters.com)(+358 9 680 50 243)(Reuters Messaging: terhi.kinnunen.thomsonreuters.com@reuters.net))