Portland, OR-based Hollywood already is holding an agreement tobe acquired by the private equity firm, Leonard Green &Partners, for $10.25 per share. That transaction originally wasproposed in March at $14 per share, but Leonard Green lowered itsbid last month because of "amended commitments" from its debtfinancing sources. On Nov. 19, Dothan, AL-based Movie Gallery putin an undisclosed offer for Hollywood.

Blockbuster officials say they must review "confirmatoryinformation from Hollywood and Hollywood's elimination of astandstill requirement currently preventing delivery of theinformation" before they will up their offer. The standstillagreement, according to Blockbuster, will not allow it to make atender offer directly to Hollywood shareholders to buy thecompany.

"We believe that Blockbuster is positioned to provide the mostvalue and best serve the interests of Hollywood's shareholders,"says John Antioco, Blockbuster's chairman and CEO, in a statement."At this point, it appears that Blockbuster will not be able toreceive the requested information from Hollywood unless and untilthe Leonard Green Partners transaction is modified to eliminate therequirement for a standstill agreement from Blockbuster, voted downby Hollywood's shareholders or is otherwise terminated byHollywood's Board of Directors."