Spain's Telefonica SA (TEF), along with the other shareholders in the holding company which control Telecom Italia SpA (TIT.MI), are negotiating the possible renewal of their shareholders' pact, Telefonica said Wednesday.

In a filing to the Spanish market regulator, Telefonica said it would provide details of the outcome of the negotiations soon, once they are completed.

Telefonica is the biggest shareholder in holding company Telco, along with insurer Assicurazioni Generali SpA (G.MI), bank Intesa Sanpaolo SpA (ISP.MI), merchant bank Mediobanca SpA (MB.MI) and the Benetton family.

Telco controls 24.3% of Telecom Italia and Telefonica has a 10% indirect stake in the company.

Company Web site: www.telefonica.com

-By Jason Sinclair, Dow Jones Newswires, 34 913958127, jason.sinclair@dowjones.com