Blockbuster bids for Circuit City

Blockbuster said it made the offer of $6 to $8 a share in a February letter to Circuit City Chief Executive Philip Schoonover, but decided to go public with it after the retailer refused to provide access to its books. (Read the letter.)

The proposal is a bold move: Blockbuster would take on a troubled and loss-making company with a greater market value than its own. Blockbuster had a market capitalization of around $630 million, based on Friday's closing price.

Circuit City fired back, challenging Blockbuster's ability to raise financing for any deal, and urging its stockholders to sit tight.

Click here to read Merissa Marr's full report via WSJ.com.