CORRECTION - Barclays says could drop ABN bid if terms wrong

Corrects amount in first paragraph to billions from millions.

LONDON (Reuters) - Barclays (BARC.L) said on Friday it would abandon its proposed 60 billion euros (41 billion pound) takeover of Dutch bank ABN AMRO ABN.AS if it cannot get the right terms.

"We have been consistent in promising ... we will not lose sight of economic reality in our pursuit of the merger objective. And putting that bluntly, that means being prepared to walk away," Chief Executive John Varley said in a statement ahead of a shareholder meeting to vote on the takeover.