Stake in Telecom Italia

Telefonica SA
25 October 2007



Further to the report registered yesterday, TELEFONICA, S.A., as provided in
article 82 of the Spanish Stock Market Act (Ley del Mercado de Valores), hereby
reports the following


SIGNIFICANT EVENT

TELEFONICA, S.A., ASSICURAZIONI GENERALI S.p.A., INTESA SANPAOLO S.p.A.,
MEDIOBANCA S.p.A. and SINTONIA S.A. (BENETTON) have acquired today, October
25th, 2007, the whole of the capital of OLIMPIA S.p.A., through the Italian
company, TELCO S.p.A. which holds approximately 23.6% of the capital that
confers voting rights of TELECOM ITALIA S.p.A.



Madrid, October 25th,  2007.





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