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

Blockbuster officials say they must review "confirmatory information from Hollywood and Hollywood's elimination of a standstill requirement currently preventing delivery of the information" before they will up their offer. The standstill agreement, according to Blockbuster, will not allow it to make a tender offer directly to Hollywood shareholders to buy the company.

"We believe that Blockbuster is positioned to provide the most value 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 to receive the requested information from Hollywood unless and until the Leonard Green Partners transaction is modified to eliminate the requirement for a standstill agreement from Blockbuster, voted down by Hollywood's shareholders or is otherwise terminated by Hollywood's Board of Directors."