refused to open its books to suitor
unless the company agreed not to launch a hostile offer for the movie rental chain, Blockbuster said.
In a release, Blockbuster said it passed on the offer and instead asked Hollywood to drop a standstill agreement with Leonard Green & Partners, with which it agreed to a $600 million leveraged buyout in March. Blockbuster said it might raise its offer for Hollywood if the company dropped the standstill pact and permitted access to its financials.
Blockbuster previously offered $11.50 a share for Hollywood, which is also being courted by
Hollywood claimed it is prohibited under its existing agreement from opening its books "unless Blockbuster agrees to standstill provisions that, among other things, would prohibit Blockbuster from making a tender offer directly to Hollywood's shareholders without the approval of Hollywood's board," Blockbuster said in a release.
"Hollywood has already provided the information requested by Blockbuster to Leonard Green Partners. Blockbuster does not believe it is in the interests of either company's shareholders for Blockbuster to sign such an agreement at this time."
Hollywood rose 38 cents, or 3%, to $13.07 in premarket trading.