HMV, the UK music retailer, revealed last night that buy-out firm Permira had raised its bid for the company by 11% to £845m (€1.2bn) after its first offer was spurned last month as "totally undervaluing the company".

Permira, whose original bid valued the company at 190p per share, raised its bid to 210p per share. HMV revealed in a Regulatory News Service announcement that it is considering the bid.