Stockholders sued MCA Inc. Wednesday, contending that a reported $7.5-billion acquisition offer from Japan's Matsushita Electric Industrial Co. is not enough.
In the Los Angeles Superior Court suit, shareholders assert that MCA Chairman Lew Wasserman, Chief Operating Officer Sidney Sheinberg and others have negotiated the Matsushita takeover as part of a "scheme" to retain control of the company.
The suit accuses Wasserman and the others of "negotiating on a preferential basis with Matsushita and failing to implement the auction or other bidding mechanisms" to maximize stockholder interests.
The suit says the proposed buyout means MCA's outstanding shares will be sold "at a price substantially below their fair and intrinsic value."
MCA's asset value has been estimated at $80 to $90 a share.
But, before news of the potential buyout, the company's stock suffered a decline that the suit said was due to its expansion plans.