Blockbuster bids for Circuit City

Blockbuster says it made the offer in February

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.

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.

Competition

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 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.