UPDATE 4-U.S. Senate postpones consideration of spy bill

(Updates throughout)

By Thomas Ferraro

WASHINGTON, Dec 17 (Reuters) - U.S. Senate Democratic leader Harry Reid, facing stiff opposition, on Monday abruptly postponed until next month consideration of a measure to give immunity to telephone companies that participated in President George W. Bush's warrantless domestic spying program.

"Everyone feels it would be to the best interest of the Senate that we take a look at this when we come back after the first of the year," Reid, facing a pile of unfinished work, said on the Senate floor.

Sen. Chris Dodd, a Connecticut Democrat, interrupted his long-shot presidential campaign to return to Washington to lead the charge against immunity.

"I thank all my colleagues who joined me in fighting and winning a stay in the rush to grant retroactive immunity to the telecommunications companies," said Dodd, who took the floor for nearly 10 hours to denounce the bill and oppose any effort to swiftly consider any action.

White House spokesman Tony Fratto said the delay in finishing work on the measure was disappointing.

"There will be very little time to accomplish this when Congress returns in January. Each day of delay brings us closer to reopening a dangerous intelligence gap that we closed last summer," Fratto said.

In August, Congress bowed to Bush's demands and expanded U.S. government's power to conduct surveillance without a court order. The measure expires in February.