Telefonica SA (TEF) said Wednesday it had agreed with most of the other shareholders in the holding company Telco that control Telecom Italia SpA (TI) to renew its pact until April 2013.

In a filing to the Spanish market regulator, Telefonica said Benetton's (BEN.MI) holding company Sintonia SA would exit the pact.

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

Sintonia was the smaller investor in Telco, with an 8.4% stake.

Telco controls 24.5% of Telecom Italia, giving Telefonica a 10% indirect stake in the Italian company.

Company Web site: www.telefonica.com

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