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WAYNE, NJ-A new suitor is apparently in the hunt for the retailtoy business of struggling Toys 'R' Us, joining the previouslyidentified Kohlberg Kravis Roberts, Bain Capital, Cerberus andothers in the game. According to a published report, Permira andApollo Advisors, both private equity firms, have teamed up tosubmit a joint bid for the business, which comes with an estimated$3.5-billion price tag.

According to sources, Permira, which opened up shop 20 years agoin London and has seven offices in Europe and one in New York, wasinitially interested only in Toys' stronger European operations,but company officials have said repeatedly that they don't intendto sell the business off piece by piece. The New York-based Apollohas apparently been brought to the table to add muscle to a bid forthe whole 1,200-store operation. That bid, if successful, couldlead to an eventual separation of the domestic and internationaloperations anyway, according to sources.