P. M. BRIEFING : MCA Stock Soars Despite Denial by Sony of an Impending Buyout
The price of MCA Inc. stock shot higher today even as the Japanese electronics giant Sony Corp. denied reports that it is negotiating to buy the entertainment conglomerate that owns Universal Studios.
“That’s a rumor,” said Jason Farrow, vice president for corporate communications at Sony’s offices in New Jersey. “Sony is not negotiating with MCA.”
Los Angeles radio station KNX reported on Friday that a deal for Sony to buy MCA would be announced today.
But Farrow, asked if an announcement is forthcoming, told a reporter, “You know better.”
In early trading on the New York Stock Exchange today, MCA was up $3.87 1/2 a share at $56.62 1/2.
MCA President Sidney Sheinberg has refused to comment on the KNX report, which came on the heels of an announcement that the film studio United Artists was being sold for $1 billion to Australian-based Qintex Group.
MCA, based in Universal City, Calif., is worth an estimated $5.5 billion.