Blockbuster & Circuit City Continue to Dance

The Wall Street Journal has posted a letter from Carl Icahn to Blockbuster CEO Jim Keyes, confirming that Icahn will buy Circuit City if Blockbuster is unable:

This is to confirm that I, and/or entities affiliated with me, (collectively with me "Purchaser") stand ready to acquire Circuit City if Blockbuster is unable to receive financing to do so or obtain any necessary shareholder approvals after doing satisfactory due diligence. Obviously, this is subject to Purchaser conducting a satisfactory due diligence review of Circuit City which will be done concurrently with Blockbuster and being satisfied as to the results of that review and of course, Purchaser will be required to obtain certain regulatory approvals which I assume that Purchaser will have no problem obtaining.

The WSJ also posted the letter from Keyes to Circuit City Chairman, President and CEO Philip J. Schoonover, requesting due diligence.

Blockbuster issued a press release to announce that Circuit City has agreed to allow Blockbuster to conduct due diligence.