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| Blockbuster bids for Circuit City | Blockbuster bids for Circuit City |
| (20 minutes later) | |
| Film rental firm Blockbuster has gone public with an all-cash bid to buy US firm Circuit City for $6 to $8 a share. | Film rental firm Blockbuster has gone public with an all-cash bid to buy US firm Circuit City for $6 to $8 a share. |
| Blockbuster said it sent a letter with the offer to Circuit City in February, but that the electronics firm had not provided access to its books. | Blockbuster said it sent a letter with the offer to Circuit City in February, but that the electronics firm had not provided access to its books. |
| However, Circuit City said it was not convinced that Blockbuster - which faces tough rivalry from online film sites - had the means to back its bid. | However, Circuit City said it was not convinced that Blockbuster - which faces tough rivalry from online film sites - had the means to back its bid. |
| The offer beats Circuit City's closing share price of $3.90 seen on Friday. | The offer beats Circuit City's closing share price of $3.90 seen on Friday. |
| Competition | |
| Circuit City said it was open to more talks, but was not prepared to embark on due diligence with the film rental chain. | Circuit City said it was open to more talks, but was not prepared to embark on due diligence with the film rental chain. |
| Blockbuster said it asked for an answer from Circuit City by February 21, but is still waiting to see the electronic firm's accounts to let Blockbuster table a definitive takeover bid. | Blockbuster said it asked for an answer from Circuit City by February 21, but is still waiting to see the electronic firm's accounts to let Blockbuster table a definitive takeover bid. |
| Blockbuster made its bid public on Monday saying shareholders "should have the chance to determine the destiny of the company". | Blockbuster made its bid public on Monday saying shareholders "should have the chance to determine the destiny of the company". |
| The advent of online film sites such as Netflix has made it tougher for Blockbuster. | |
| Blockbuster chief executive James Keyes said the deal with Circuit City would create a chain able to sell portable devices as well as the entertainment to be played on them, not dissimilar to what Apple stores offer. | |
| A tie-up of the two firms would lead to an $18bn global retail company, according to Blockbuster. | A tie-up of the two firms would lead to an $18bn global retail company, according to Blockbuster. |