Matsushita-MCA Talks End Without Resolution

MCA Chairman Lew R. Wasserman and President Sidney J. Sheinberg met Tuesday afternoon in San Francisco with senior executives from Matsushita Electric Industrial Co., but failed to reach accord on the degree of control sought by the entertainment subsidiary.

“The issues were discussed but nothing was resolved,” Sheinberg said Tuesday night from his hotel.

Despite the executives’ effort to meet privately, Japanese news reporters were spotted outside the hotel.

Chief Executive Masaharu Matsushita reportedly spoke with Wasserman in San Francisco but did not sit in on the meeting, which was chaired by Matsushita President Yoichi Morishita.

The notion of buying back 51% of the company was apparently not broached by the MCA executives, despite heated media speculation. The issue of control was the focus, rather than any specific discussion of ownership, according to a source familiar with the talks.

Sources said Matsushita proposed the meeting several weeks ago, apparently to deal with worsening relations with the MCA unit. In September, Matsushita rebuffed MCA executives who were excited about a proposal to join ITT Corp. and Dow Jones in a bid for CBS.