Using one atomic equivalent of iodine, the title reaction gives 3,4-benzocoumarins. The reaction appears to be an electrophilic cyclisation but there is evidence that the initial complex may decompose homolytically to a minor extent.
D. J. Chalmers and R. H. Thomson, J. Chem. Soc. C, 1968, 848 DOI: 10.1039/J39680000848
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