MCA stock continues to slide amid speculation about buyout

September 29, 1990|By Los Angeles Daily News

LOS ANGELES -- MCA Inc.'s stock price has dropped for the second straight day amid speculation that formal buyout talks with Matsushita Electric Industrial Co. will begin next week.

The company's stock closed yesterday at 58 3/4 , down 1/4 , as volume slowed to half of the previous day's trading. But MCA shares were still up 24 1/4 points since the company acknowledged Tuesday that it was talking to a potential buyer.

MCA executives had no comment on a Wall Street Journal report that principals of the two companies are to meet late next week to begin negotiating a $7.3 billion to $8.7 billion acquisition of the entertainment company based in nearby Universal City.

Under the proposed agreement, the price will be from $80 to $95 a share and current MCA management will remain in place, the Journal reported.

Separately, an MCA Records spokeswoman would not confirm a report that MCA's Music Entertain ment Group has agreed to form a joint venture with Matsushita's 51 percent owned Victor Co. of Japan Ltd. to market and distribute MCA records, plus its Geffen and GRP labels, in Japan.

Meanwhile, the Deloitte & Touche accounting firm said yesterday that it is undertaking a major survey of top executives in Hollywood to evaluate the future role of the United States in light of increasing foreign investment and expanding technologies.

Results are expected to be available in three months, said Harley Neuman, the firm's senior manager in Los Angeles.

Mr. Neuman said the firm's study predates the news of thpossible merger between MCA and Matsushita but that developments this week underscore the trend.

The survey seeks opinions on the future of U.S. leadership in entertainment production.

Chuck Slocum, director of analysis with the Writers Guild of America, said foreign investment in Hollywood "underlines the strength of the American creative community."

Baltimore Sun Articles
Please note the green-lined linked article text has been applied commercially without any involvement from our newsroom editors, reporters or any other editorial staff.