Matsushita officials rejected the idea.
Matsushita officials think their company has the fourth-largest corporate trade surplus in Japan, behind Toyota, Nissan and Honda.
A Matsushita official met with John C. Malone, president of Tele-Communications Inc., to discuss a possible sale in early 1994.
Matsushita officials, who say they regret that their guests were offended, offer a different interpretation.
"There are not exactly consumer prices," a Matsushita official said.
A Matsushita official at company headquarters in Osaka said the company had entered the agreement to avoid additional costly and time-consuming disputes over its taxes.
The company is still in discussions with the revenue service over its taxes for 1983 to 1990, the Matsushita official said.
Instead, Matsushita officials said, the company will concentrate on producing more specialized chips for its own products.
Matsushita officials could not be reached for comment.