(AGI) Madrid, July 17 - Telefonica SA has cut its stake inTelecom Italia SpA following its sale of 750 million euros inconvertible bonds, exchangeable for as much as 6.5 percent ofTelecom Italia's share listed capital. Reporting the operationwith Spanish securities and exchange commission Cnmv onThursday, Telefonica said its stake in the Italian telecomscompany would drop to within a range of 8.3 percent and 9.4percent. The bonds carry a 6 percent fixed annual interestrate, a conversion price ranging between 0.860 euros and 1.032euros, and will mature on July 24, 2017. (AGI) . .