Wasserman Comments Boost MCA Shares
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MCA Corp.’s stock surged higher Monday on renewed takeover speculation following reports that longtime Chairman Lew Wasserman might be willing to consider dropping the company’s resistance to a buyout.
But an MCA spokesman and some analysts said a statement by Wasserman--who reportedly told columnist Dan Dorfman that he would “consider anything in the best interest of my shareholders”--was consistent with company policy.
Dorfman commented on the possibility Friday night on a Cable News Network show that was repeated Monday morning.
MCA, which has fiercely resisted buyout overtures in recent years, rose to $67.50 a share, up $5.63, on the New York Stock Exchange.
A secretary for Wasserman, who owns 7% of MCA’s shares, said the 76-year-old chairman did not give interviews. MCA President Sidney J. Sheinberg also declined an interview.
Harold Haas, an MCA spokesman, said Wasserman’s statement to Dorfman was “consistent with the policy of MCA” regarding takeovers.
Analyst Steve Rosenberg of Rose Media agreed, saying the stock surge was not big enough and Wasserman’s reported statement to Dorfman was not conclusive enough to speculate that MCA is for sale.
“They are a perennial takeover target and speculation after Columbia going to Sony is rife,” Rosenberg said. “But I certainly wouldn’t read any tea leaves into it.”
Unsubstantiated reports last March indicated that Sony might target MCA. In 1985, MCA shareholders agreed to increase the number of common shares by 50% on reports that RCA was interested in MCA.
The company strengthened its takeover defense in early 1988 after New York developer Donald J. Trump announced that he had purchased a small stake in MCA.
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