Italian TV and film conglomerate Cecchi Gori Group (CGG) is expected to sell its 18 per cent stake share in pay-TV operator Stream and seek an alliance with Italian state electricity company Enel.

The rumours regarding a change of shareholders gained ground on news that Mediaset launched two new channels for Stream’s pay-TV package (see separate story). Michele Preda, president of Mediaset’s Mediadigit unit, responding to questions whether this meant that Mediaset would soon become a Stream shareholder, said that “changes in capital have to be decided first and only later communicated to the press.” On March 23, Italy’s communications under-secretary Michele Lauria revealed that there would be developments soon regarding the shareholding structure of Stream and that Vittorio Cecchi Gori’s CGG could exit pay-TV in order to “draw up other types of alliances in the multimedia sector with a strong national partner.” According to Lauria, CGG wants L90 billion (Euro 46 million) for its 18 per cent stake, as well as a guarantee that all the contracts it signed will be respected.

In the meantime, Stream will launch a new movie channel on April 15 with movies from Cecchi Gori’s immense movie library and will continue using TMC (CGG’s TV network) sports commentators for its live football coverage.

However, Enel may prove to be a life belt for Cecchi Gori. The two groups, although with very different strategies, have been rumoured to be considering an alliance in the telecommunication field. Although Enel has denied these rumours, it is believed that the utility is taking time to weigh all strategic and political implications of such a deal. Other possible partners being mentioned are the Espresso publishing group and private telco Tiscali.

Meanwhile, Cecchi Gori is being sued by MGM Worldwide Television over the rights to hundreds of MGM movies and TV shows. MGM has filed for an injunction in a Rome court to stop Cecchi Gori from airing MGM product on its two TMC TV stations, claiming that it has not been paid.