* Tunisie Telecom dual listing delayed to Q1/2011-sources
* Tunisian official source: More time needed for procedures
* A second source: Tunis wants 400-500 million euros from sale
(Adds context, details and background)
By Tarek Amara
TUNIS, Nov 23 (Reuters) - Plans for a dual listing this year of state-controlled Tunisie Telecom were delayed to the first quarter of next year to allow time for the completion of procedures, two sources close to the matter said on Tuesday.
An official at the Tunis stock exchange and another source with knowledge of progress affecting the IPO plan said the listing was delayed to the first quarter of next year.
The dual initial public offering, on the Tunis exchange and an unnamed European bourse, will be the most high-profile IPO in Tunisia in years and is likely to raise the profile of the country's emerging equities market.
Last month, the head of the Tunis stock exchange said 20 percent of Tunisie Telecom's capital would be floated, with equal shares from the government's 65 percent holding and from Dubai's TECOM Investments and Dubai Investment Group which together hold 35 percent.
But on Tuesday, a Tunis bourse official said: "Tunisie Telecom's flotation cannot be completed in 2010. It may take place two months from now.
"It (the delay) is normal given the time such operations take. The bourse board of directors will meet in December about the IPO and then it will grant its approval for the IPO. For a company like Tunisie Telecom, the process should not take more than two months," the Tunis bourse official told Reuters.
The second source said Tunisian authorities delayed the listing to the first quarter of 2011 pending a decision on which foreign stock exchange they would eventually opt for.
"The Tunisians have to decide whether the foreign listing will be in London or in Paris ... That is why they have decided to postpone the dual listing to February or March 2011," the second source said.
The government wants to raise between 400 million and 500 million euros from the sale, the source said. The official source from the Tunis stock exchange declined to comment on these figures.
Tunisie Telecom has a capital of 875 million euros. It competes with private mobile phone operator Tunisiana which is owned by Gulf Arab telecom firms and a Tunisian firm.
Earlier on Tuesday, Tunisia said it would tap international debt markets in early 2011 after a two-year hiatus to help the government raise public expenditure by 5 percent next year while keeping the budget deficit target almost unchanged from 2010.
No reference was made to expected proceeds from the privatisation of state assets. (Editing by David Holmes and Jon Loades-Carter)