Permira could be coming back for a second takeover bid

A previous offer from Permira stalled over demands for a cash injection to plug a gap in WH Smith's pension scheme

Permira's bid vehicle, Jamaica Trading, has now said it is "considering" whether to submit a revised offer.

The firm said no decision had been made on the value of any offer. Reports at the weekend suggested a new bid could be worth about £850m ($1.6bn).

If so, this would be a lower offer than the previous bid of £940m.

Pension gap

Talks between Permira and WH Smith collapsed last month after the venture capital firm said was unlikely to make a bid because of the demands of the WH Smith pension trustees.

The trustees insisted that any bidder must pledge to fill the near-£200m gap in the pension pot before a deal can be struck to buy WH Smith.

WH Smith became vulnerable to takeover after it announced in April that its High Street shops were delivering "unacceptable" results and half-year profits had plunged 29%.

Fierce competition from supermarkets and internet retailers has eaten into its core business which sells books, records and DVDs.