Film rental giant Blockbuster has offered to acquire Circuit City, a US-based chain of consumer electronics stores, for at least $6 per share in cash.

Blockbuster said that the original offer was made in a letter to Circuit City chairman and chief executive Philip Schoonover on 17 February.

However, Circuit City has failed to provide due diligence necessary to allow Blockbuster to make a definitive proposal.

Blockbuster is making its proposal public because it believes that "the shareholders of Circuit City should have the opportunity to participate in determining the destiny of the company".

The film rental firm said that the combination of the two companies would result in an $18bn global retail enterprise.

"This would allow both companies to benefit from the revenue growth generated by their complementary products, while the resulting synergies would substantially improve consolidated financial performance, thereby increasing shareholder value," Blockbuster said in a statement.

Jim Keyes, chairman and chief executive at Blockbuster, said that the proposal offers Circuit City a "significant premium" on its existing stock price.