Still No Deal as MCA Talks Break for the Holiday

Talks between Matsushita Electric Industrial Co. and MCA Inc. continued late Wednesday night without an agreement under which the Japanese electronics giant would buy MCA.

The two sides remain separated by what one individual close to the discussions characterized as a “narrow” price differential. Market sources put the differential as low as $5 per share, and one of them said Matsushita was willing to pay as much as $70 a share, while MCA was demanding at least $75.

People familiar with the talks previously had said any deal was likely to pay MCA stockholders between $75 and $85 a share, or as much as $7.79 billion.

Spokesmen for both companies declined to comment on the negotiations, which have taken place largely in the Manhattan law offices of Simpson, Thacher & Bartlett, the firm that represents Matsushita.

At about 5:30 p.m. EST, MCA Chairman Lew R. Wasserman and his top lieutenants left the session, which several individuals said would be adjourned at that point until Saturday or later. But Creative Artists Agency chief Michael Ovitz, who is serving as a consultant to Matsushita, remained in discussions with lawyers from both sides, and Wasserman was summoned back to the talks late Wednesday. It wasn’t clear how the talks ended or when they would resume.

In the past week, individuals familiar with the talks have speculated that an agreement could come as early as this weekend.