MCA Says It May Sell Spencer Gifts Unit

MCA Inc. is considering selling its slumping gift store and catalogue unit, Spencer Gifts, and will make a decision later this year, Chairman Lew R. Wasserman disclosed Wednesday at the entertainment giant’s annual meeting in Chicago.

Responding to a question about the firm’s plans for the unit, Wasserman noted that retail sales are weak nationally. He did not elaborate.

Spencer Gifts has a mail-order catalogue business and operates retail gift stores, jewelry stores and kiosks across the country. Earnings of MCA’s retail and mail-order division declined to $403,000 last year, from $9.5 million in 1987 and $115.5 million in 1986.

Separately, Wasserman said MCA had been “successful” in its effort to keep the management of Cineplex Odeon Corp. from buying control of the Canadian-based theater operator. MCA, the largest shareholder of the concern with a 49% stake, resisted the bid by Cineplex Odeon Chairman Garth H. Drabinsky to buy 30% of company shares from the Bronfman family.

Wasserman turned aside questions on news reports that MCA may go private or be sold. “We are constantly examining what is in the best interests of all shareholders.”

Shareholders defeated a proposal to have the company cease doing business in South Africa. The proposal was beaten by a margin of 73% to 8%, with 19% abstaining.

The advocates of the proposal were the Adrian Dominican Sisters and Christian Brothers Investment Services Inc., who together hold 60,500 shares of MCA stock.

Sid Sheinberg, MCA president and chief operating officer, said the company considers the issue a matter of freedom of speech. He cited the example of the Universal International Pictures film, “Cry Freedom,” about the life of South African black activist Steve Biko.

“We don’t see this as analogous to companies that sell products . . . . We see it as analogous to our freedom of speech,” he said.

Sheinberg said MCA would consider using profits from its South African operations to fight apartheid there.