HMV and Waterstone's stores could be merged to create entertainment retail centres, under plans outlined after private equity firm Permira upped its bid to more than £840m for the HMV Group last week.

Details of the plans came as the HMV Group this week prepares to announce its response to Permira's new revised bid, up to 210p a share from the 190p bid last month.
Clear Channel International chairman Roger Parry, lined up by Permira to head the group in ...