Rift Grows Between Matsushita, MCA as Sale Talk Continues : Entertainment: MCA President Sidney Sheinberg says Japanese parent is destroying its Hollywood property.

MCA President Sidney Sheinberg, exasperated at being ignored as Matsushita Electric Industrial considers selling the entertainment conglomerate to Seagram Co., took off the gloves Wednesday, saying the Japanese electronics giant “might as well sell it” because the parent firm is destroying MCA.

“By virtue of the process they are using, they are in fact doing a lot to destroy the management, so they might as well sell it,” Sheinberg said in a telephone interview.

Sheinberg’s comments reflect the intense anger and humiliation felt by MCA executives, who have been kept in the dark as Matsushita considers selling the unit to Seagram. “God bless him,” was the reaction of another top MCA executive when told of Sheinberg’s remarks.

His comments triggered speculation that he and Chairman Lew Wasserman have had it with Matsushita and may be on the verge of formally resigning.

Asked if he plans to do that soon, Sheinberg said, “If and when I choose to announce my resignation, I’m not going to do it casually in a telephone conversation.”

But sources close to the company said the already-tense relations between MCA executives and Matsushita have become so strained that it would take a miracle for Wasserman and Sheinberg, the longest-running management team in Hollywood, to stay, even if asked to by a new owner.

MCA is the parent of Universal Pictures, MCA Music and the Universal Studios theme parks. Matsushita bought the company in 1990 and left Wasserman and Sheinberg in charge, in part because the executives have close ties to some of the top talent in Hollywood, including director Steven Spielberg.

A separate MCA source said Wednesday that Sheinberg and Wasserman are likely to wait at least until the situation is resolved. Sheinberg said he has not spoken to Matsushita or to Seagram Chief Executive Edgar M. Bronfman Jr., and he said no meetings are scheduled. Matsushita has declined to confirm talks with Seagram or comment on what its plans for MCA would be.

Sheinberg’s remarks came as the beverage company reportedly is on the verge of selling its stake in DuPont for about $10 billion. Speculation has been increasing that Seagram will buy a majority interest in MCA, leaving Matsushita as a minority investor.

An announcement on the sale of the DuPont stock could come as early as today. Sources said Seagram and Matsushita are in exclusive talks about MCA, although sources said investment bankers continue to hear speculation that another suitor will emerge soon with an offer.

Seagram investors appear less than thrilled with the prospects, and sources said issues over the price to be paid and who would run MCA remain unresolved.

Seagram stock has lost about $1.4 billion of its market value since rumors began to swirl about its plans, although the shares rose 12.5 cents Wednesday to close at $28.625 in New York Stock Exchange trading. Because of the strength of the yen, Matsushita would have to get more than $10.3 billion to get the equivalent of the $6.6 billion it paid in 1990.

Hollywood rumors have circulated that Bronfman would hire Creative Artists Agency Chairman Michael S. Ovitz or entertainment mogul Barry Diller to run MCA. A CAA spokeswoman said Ovitz plans to stay at the agency. Diller could not be reached for comment, but sources said he has no plans to run MCA.

Hollywood executives question whether Bronfman could run an entertainment concern of that size, noting that Seagram has in effect been a “dividend collection company” whose earnings come largely from its investment in chemical and oil giant DuPont.

Relations between MCA and Matsushita have been tense since last fall, when MCA aired its complaints that Matsushita has kept MCA’s hands tied on strategic decisions. Hollywood executives believe that the public airing of the complaints caused what appears to be a permanent rift with Matsushita.

Separately, the Toronto Stock Exchange said Seagram had declined to comment on reports that it will sell its stock to DuPont.

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Times staff writer Claudia Eller contributed to this report.