Telecom Italia hybrid bond may have 60-year maturity -sources

MILAN Feb 15 (Reuters) - Italian telecoms group Telecom Italia's planned hybrid bond will probably have a duration of 60 years and be callable after 5 years, sources close to the operation said.

The heavily indebted company said last Friday it planned to raise up to 3 billion euros ($4 billion) in costly hybrid securities and halved its dividend to help fund its infrastructure spending.

The company sounded out investors this week and a decision on terms and timing of a first portion of the issue, which is led by banks Barclays and JP Morgan, will be taken on Monday.

The first tranche should be of 500-600 million euros with a yield that could be of 7.5-8 percent, the sources said.

The bond will most likely envisage "a 60 years maturity date and a call option after 5 years", one of the sources said.

Telecom Italia however could still decide not to go ahead given difficult market conditions and the upcoming Italian general election, according to the sources.

Telecom Italia was not immediately available to comment. ($1 = 0.7490 euros) (Reporting By Gabriella Bruschi. Editing by Jane Merriman)