The Detroit Free Press reports that U.S. antitrust enforcers have been asked by Federal Trade Commission lawyers to intervene in Blockbuster's $833 million bid for rival Hollywood Entertainment Corp. The FTC believes that a merged Blockbuster/Hollywood would increase movie rental fees.
Blockbuster's bid, although higher than the recent $13.25 cash per share bid on the company placed by Movie Gallery, Inc., has been rejected by Hollywood.
Despite the rejection, Blockbuster has planned to formally place its bid on the company on March 24 unless the the bid is challenged in court.