* Extends probe deadline to Jan. 14, 2009
* Credit Agricole may avoid 1.5 billion euros writedown
(adds details, background)
ROME, Aug 6 (Reuters) - Italy's antitrust authority has extended by three months a deadline for its probe into whether Credit Agricole violated competition conditions in its shareholder pact with Generali over their stakes in Intesa Sanpaolo.
The antitrust said in a statement it had granted the extension, requested by bank Intesa Sanpaolo which is facing a possible fine of up to 5 billion euros ($7.19 billion), to Jan. 14, 2010. Intesa sought the delay to buy time ahead of an expected change in international accounting standards which would allow Credit Agricole not to have to write down its stake in the Italian bank for an estimated 1.5 billion euros.
"The antitrust authority accepted the request by the company to have 90 more days for its defence," the competition watchdog said in a statement.
The antitrust authority is examining whether Intesa Sanpaolo met competition conditions set in December 2006 when the watchdog cleared the merger forming the bank.
Those conditions required shareholders not to set up pacts. Credit Agricole also had to cut its 5.8 percent stake to less than 5 percent by Jan. 1, 2008, and to less than 2 percent this year.
Credit Agricole and fellow stockholder Assicurazioni Generali SpA agreed a shareholder pact in May for their combined 10.8 percent in Intesa Sanpaolo, prompting the antitrust investigation.
Credit Agricole has argued that it should not be required to sell down the stake given the poor state of markets.
(reporting by Alberto Sisto; Editing by David Cowell)