SEC Checking Trades in MCA Before Merger : Securities: The agency is trying to determine if insider trading occurred before the Matsushita deal.

The Securities and Exchange Commission is looking into possible insider trading in MCA stock before merger talks with Matsushita Electric Industrial Co. were revealed last year, but MCA President Sidney Sheinberg has denied any wrongdoing.

The SEC is investigating stock trades by individuals who knew about the merger negotiations between MCA and Matsushita, which were revealed in September, 1990, the Washington Post reported.

The investigation is focusing in part on Sheinberg’s son, Jonathan, a literary agent with Triad Artists, the newspaper reported. Jonathan Sheinberg, who is not an MCA employee, was unavailable for comment.

When news of the meetings broke, MCA’s stock jumped to $54 a share, up $20. Ultimately, Matsushita acquired MCA in a $6.6-billion deal.

Sidney Sheinberg said in a prepared statement that he was “aware that the Securities and Exchange Commission is conducting a non-public inquiry relating to trading in MCA common stock prior to the disclosure last fall of discussions relating to the possible acquisition of MCA.

“Mr. Sheinberg also stated that counsel has advised him that there is no indication that he or anyone at MCA engaged in any improper conduct. Mr. Sheinberg also stated that he and MCA have fully cooperated with the Securities and Exchange Commission and will have no further comment.”