Blockbuster, the largest specialty movie-rental chain with 9,000stores, would also be willing to offer a higher price for Portland,OR-based Hollywood if it receives certain financial information onthe retailer. But Hollywood's board of directors has yet to releasethose figures, Blockbuster officials say.

If Blockbuster, favored by some analysts to complete the deal,is able to acquire Hollywood, it would add about 2,000 stores toits portfolio. Blockbuster officials have said if they're able tobuy Hollywood, the acquisition would help their company "compete inthe rapidly changing home entertainment environment," but havereleased few details about their potential plans for the chain. Forinstance, they have not said whether they intend to change the nameof the Hollywood stores and fold them into their current chain.

Blockbuster's offer follows private equity firm Leonard Green& Partners' $10.25 per share agreement earlier this year topurchase Hollywood. Then, after Blockbuster made its offer, Dothan,AL-based Movie Gallery proposed to buy Hollywood for an amount itwould not disclose. The Leonard Green bid was originally $14, butthe firm lowered the offer after financing issues.