Spain's Telefonica SA (TEF, TEF.MC) and Telecom Italia's (TI, TIT.MI) main Italian investors apart from the Benetton family renewed their shareholding pact Wednesday, postponing a crucial decision over control of Italy's largest telecomunications operator.

Telco's pact, which controls Telecom Italia with a 24.5% stake, was confirmed for another three years, with a "withdrawal clause" that allows the remaining shareholders to exit the pact in April 2011.

The pact keeps control in the hands of Telefonica, which holds a 10% indirect stake in Telecom Italia, together with Italian banks Intesa Sanpaolo SpA (ISNPY, ISP.MI), Mediobanca SpA (MB.MI) and insurer Assicurazioni Generali SpA (G.MI).

Benetton's holding company, Sintonia, said Wednesday it will leave the pact. Sintonia was one of Telco's smaller investors, with a 8.4% stake.

Analysts widely expected a renewal of Telco's shareholding pact, while Sintonia's last-minute withdrawal is not seen as having a big impact on Telecom Italia's controlling structure in the short term.

The fact that Telco's shareholders have included the possibility of abandoning the pact after 18 months indicates a final solution for Telecom Italia's control has yet to be found, analysts noted.

Telco was created in 2007 to lock in Telecom Italia's control after Pirelli & C. (PC.MI) sold its key indirect stake in Italy's largest telecom operator.

The exit of Sintonia comes after the Benetton family openly voiced disappointment over their telecom investment.

Sintonia posted a EUR46 million loss in 2008 after a EUR117 million write-down of its investment in Telco.

According to people familiar with the situation, Sintonia will take on its part of Telco's debt after leaving the pact and will retain its direct stake in Telecom Italia.

Telco shareholders said in a joint statement that they will evaluate alternative ways for Sintonia to exit, adding that its departure will be possibly completed by the end of November.

With overlapping operations in growth areas like Latin America, Telefonica has long been considered a likely merger partner for Telecom Italia.

But Rome has signalled it will not allow a strategic national asset like Italy's largest phone operator to fall into foreign hands.

Last month, Italy's deputy communications minister attacked Telefonica's stake in Telco as a "significant problem."

Telefonica's strong presence in Telco has also been questioned by some investors, including the Fossati family, which owns a 5% stake in Telecom Italia, and the Asati group of small shareholders, which says the Spanish company is an obstacle to Telecom Italia's future growth.

-By Giada Zampano, Dow Jones Newswires; +39-06-69766920; giada.zampano@dowjones.com

(Sabrina Cohen and Jason Sinclair contributed to this report.)