UPDATE 1-Impregilo court ruling delayed, shares dip

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MILAN, July 22 (Reuters) - An Italian court failed to deliver an expected ruling on 750 million euros ($1.19 billion) in frozen payments to builder Impregilo SpA (IPGI.MI) on Tuesday, prompting a dip in the share price.

The market had expected a court in Naples on Tuesday to decide on the payments frozen as part of a probe into waste management contracts in the southern Italian region of Campania.

Impregilo, Italy's biggest construction company by market value, said the court hearing had ended and a decision had yet to be made.

"The company will inform the market in a timely fashion as soon as it is informed of the court's decision," it said in a statement.

After the hearing ended, Impregilo's share price fell sharply, leading to a brief trading suspension. The shares pared losses to be up 1.13 percent at 3.40 euros at 1526 GMT, bucking a 1.17 percent downturn in the DJ Stoxx European construction and building materials index .SXOP.

Impregilo closed up about 3 percent on Monday, boosted by a weekend report in Borsa & Finanza newspaper that shareholder Igli SpA could go ahead with a stock swap for Impregilo shares.

The swap involving Dutch bank ABN AMRO AAH.AS could force Igli to launch a buyout offer for Impregilo. Igli said it had yet to decide whether to exercise the exchange. (Editing by Paul Bolding)