Make it a Circuit City night? Blockbuster on Monday announced that it offered to acquire Circuit City Stores for $6 per share in a February 17 letter, but Circuit City is giving Blockbuster the cold shoulder.

"Unfortunately, to date, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive proposal," Blockbuster said in a statement. "Blockbuster is making its proposal public because it believes the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company."

Blockbuster also warned that it could yank its offer given that the video retailer "has other strategic opportunities." The letter asked for a response by February 21.

Circuit City confirmed Monday that it received the Blockbuster offer, and said that it "continue to carefully consider and evaluate Blockbuster's unsolicited proposal" but advised shareholders not to take any action.

Circuit City said that Blockbuster has approached them before, but said, "To date, Blockbuster has been unable to satisfy Circuit City and its advisers that Blockbuster's proposal could be financed."

Circuit City has some unanswered questions about the deal, the statement said.

"Among those questions are whether the proposed acquisition would require a refinancing of the existing Blockbuster debt, and if so, what would be the terms and structure of any new debt; how large a rights offering would be required to fund the transaction and what steps Blockbuster has taken to provide a backstop to ensure successful execution of the rights offering contemplated; and what precise internal and external approvals Blockbuster anticipates for a proposed transaction, including approval of the contemplated rights offering by Blockbuster shareholders and registration of the offering with the Securities and Exchange Commission."

Circuit City is willing to talk, but not until those questions are answered, the company said.

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