UPDATE 1-Italcementi, Ciments Francais suspend merger

* Decision to delay merger relates to U.S. noteholders

* Final decision delayed one week

(Adds details, background)

MILAN, June 19 (Reuters) - Italian cement maker Italcementi (ITAI.MI: Quote, Profile, Research) and its French unit Ciments Francais (CMFP.PA: Quote, Profile, Research) have decided to suspend a final decision on their merger until a meeting next week while confirming their favourable view of the operation, they said on Friday.

In a joint statement the two companies said they had made the decision in the face of ongoing discussions with U.S. holders of notes issued by Ciments Francais issued in 2002 and 2006 to the overall tune of $500 million.

The companies and the noteholders disagree on contractual clauses regarding whether a merger can go ahead without the prior consent of the noteholders, the two companies said.

The boards of the two companies will reconvene no later than June 26 to take a final decision on the approval of the merger, they said.

The two groups confirmed the favourable valuation of the merger.

Italcementi, the world's fifth-largest cement maker by production capacity, said in February it would buy out the 18 percent of Ciments Francais it does not already own.

Ciments Francais will pay a one-off dividend of four euros a share if the planned takeover by Italcementi goes through. (Reporting by Stephen Jewkes; Editing by David Jones)