Icahn prepared to buy Circuit City if Blockbuster can't

RICHMOND, Va. (AP) - Circuit City Stores says it will allow Blockbuster to review its books in connection with the video-rental chain's bid to buy the consumer electronics retailer.

Circuit City also revealed Friday that it has received a letter from Dallas-based Blockbuster. It indicates that its largest shareholder, investor Carl Icahn, would buy Circuit City on his own if Blockbuster can't get financing or can't get shareholder approval.

Richmond-based Circuit City Stores says it hired Goldman Sachs to explore strategic alternatives, which may include a sale of the company, but that its board has not determined to pursue a particular option.