A consortium led by Telefonica of Spain cleared the last major hurdle toward the proposed acquisition of a controlling 23.6% stake in Telecom Italia (TI), as Brazilian regulators approved the U.S. $5.8 billion deal with conditions. Telefonica holds a 42% stake in the consortium, known as Telco SpA, which includes Italian insurance carrier Generali, Italian banks Mediobanca and Intesa Sanpaolo, and Italian fashion retailer Benetton. The transaction, announced last April, would give Telco full ownership of Olimpia, a holding company in possession of an 18% interest in TI. As members of Telco already hold a direct stake of 5.6% in TI, the consortium, upon closing of the transaction, would emerge with a total controlling stake of 23.6%. Because Telefonica and TI are major participants in Brazil’s telecom market, sources say that the approval of Brazilian regulators is central to the outcome of the deal. Vivo Participacoes, Brazil’s top cellular carrier, is 50% owned by Telefonica. TI, meanwhile, owns TIM Participacoes, the nation’s second-leading wireless operator. Consenting to the deal, Brazilian regulator Anatel imposed 28 conditions that, among other things, require Vivo and TIM to remain as independent companies. In a regulatory filing on Wednesday, Telco said it would consummate the transaction within days