Italian TV and film conglomerate Cecchi Gori Group (CGG) has rejected a plan to sell off a majority interest in its ailing TMC TV unit and also decided to put on hold the announced flotation of its lucrative film operations.

CGG has long been devising a plan to shore up spiralling debt that now amounts to roughly L1 5 billion (Pounds 489 million). But after recently announcing an imminent flotation on the Milan stock exchange of a substantial stake in Finmavi, its movie production and distribution unit, it seems that CGG owner Vittorio Cecchi Gori has had second thoughts on relinquishing control of his ailing company. As a result, economic adviser Valerio Veltroni, who was the rescue plan’s main architect, has decided to part company with Cecchi Gori, after failing to convince him to sell a majority stake in his two TV channels to a group of Italian entrepreneurs headed by financier Francesco Micheli.

A Cecchi Gori spokesman confirmed that Veltroni has amicably left the group. "We are still pondering what to do," adding "what is sure is that we only want to sell off minority stakes." CGG had previously confirmed that negotiations were going on with potential partners, both Italian and foreign, regarding the possibility of ceding a minority stake in both its TV and movie units. One of the leading candidates for taking over CGG’s two TV channels (TMC and TMC2) seemed to be Milan financier and representative of US bank Donaldson, Lufkin & Jenrette (DLJ), Franceso Micheli.

Also mentioned as possible buyer was French publishing giant Hachette which, following the takeover of Italian publisher Rusconi, has expressed interest in investing in the TV sector.