The venture capital group targeting retailer WH Smith confirmed it was considering a second bid for the troubled high street retailer.

Permira's renewed interest comes a month after it suspended talks with WH Smith because the potential £940m offer would have required a substantial amount of cash to bridge a gap in the company's pension fund.

Reports at the weekend said Permira had since met five banks to discuss funding for a new offer. It is thought the approach could be worth about £850m.

In a brief statement yesterday, Permira confirmed it was considering whether to submit a revised offer.

The company said: "No decision has currently been made on the value of a potential revised proposal, if any is to be made."