The recent tough times have weighed on the share price

Shares in WH Smith were 34% higher at 349.5 pence by the close.

The retailer met Permira last week after it offered �940m, or 375p a share, for the group. That was 44% more than Friday's closing price of 260p.

WH Smith said its board would meet on Tuesday to discuss the offer, which is fronted by two former WH Smith bosses.

The bid is being fronted by Simon Burke, the former head of Hamleys toy store and a former WH Smith board member, and Keith Hammill, chairman of menswear retailer Moss Bros and a former WH Smith finance director.

Permira hit the headlines last year with an unsuccessful attempt to buy the department store Debenhams.

Tough market

Any purchase of WH Smith would be a mix of cash and shares. WH Smith reminded shareholders that talks were at an early stage and as yet no final offer had been made.

Further details of the offer may be revealed in the group's trading update on Thursday - which is expected to detail how many jobs will go in its Swindon and London head offices.

Up to 300 staff are expected to lose their jobs.

Poor sales figures and a slump in share price over the past six months have left WH Smith open to predatory bids.

The problems facing the company, which is expected to cut a quarter of staff at its headquarters, are far from unique.

Along with retailers such as chemist Boots, WH Smith is often called a "legacy brand".

Simply put, this is a company that has been around for a long time, that worked in the past but is struggling today.

One stop

WH Smith has been losing customers to supermarkets such as Tesco offer cut price compact discs, DVDs and books.

Time-conscious shoppers today can pick up the papers and stationery while they get the groceries.

According to the BBC's business editor Jeff Randall, the company is failing to stand out.

"What is WH Smith's unique selling point?" he asks. "What does it offer that customers can't buy or get more easily somewhere else?"

WH Smith facts 742 shops across the UK More than 31,000 employees Sales of �2.9bn in 2003 Track WH Smith shares today

"The collapse in the company's share price tells you that the City doesn't rate its prospects."

WH Smith, for its part, is aware that it needs to make changes.

Under new chief executive Kate Swann, the company is reviewing its businesses.

Some analysts have said that WH Smith will lose even more ground to rivals unless it cuts bureaucracy and speeds up its decision-making process.

Despite its problems, many analysts see WH Smith as a company that still has potential.

Its 742 shops are spread across the UK in almost all the top shopping areas, as well as airports and railway stations.

The brand and logo, meanwhile, are easily recognisable.

"The buyout investors must believe they know something that the current management doesn't," said the BBC's Jeff Randall.