UPDATE 1-DSB says AnsaldoBreda offered $412 mln for delays

* Gives AnsaldoBreda ultimatum, says could cancel order

(Adds detail, background)

COPENHAGEN, May 20 (Reuters) - Danish rail operator DSB said on Wednesday Italian transport systems company AnsaldoBreda (STS.MI) had offered to pay 2.25 billion crowns ($412 million) compensation for delayed train deliveries.

AnsaldoBreda, a subsidiary of Italian aerospace and defence group Finmeccanica SpA (SIFI.MI), had agreed to deliver 106 trains to state-owned DSB from 2003-06 but has so far delivered only 15, DSB spokesman Niels-Martin Methmann said.

In May 2008, DSB delivered an ultimatum demanding AnsaldoBreda deliver 14 trains approved for national Danish traffic by May 2009, along with one train that could be coupled into national traffic.

DSB said while AnsaldoBreda met the deadline, the trains had many flaws that needed to be corrected.

DSB said it has given AnsaldoBreda another ultimatum which includes a possible cancellation of the contract if the trains are not delivered according to the delivery plan.

AnsaldoBreda had no comment.

(Reporting by Rasmus Jorgensen; additional reporting by Paolo Biondi in Rome; Editing by Will Waterman and Dan Lalor) ($1 = 5.460 Danish crowns)