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 Blockbuster indicating that the company's largest shareholder, investor Carl Icahn, is prepared to buy Circuit City on his own if Blockbuster can't get financing or can't get shareholder approval.

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