THE founder of Waterstone's yesterday confirmed he was trying to buy the book chain back for £280m - but only if owner HMV drops its interest in rival Ottakar's.

Tim Waterstone went public with his private equity-backed offer amid fears that HMV was stalling for time so it could decide whether to revive its campaign for Ottakar's.

HMV agreed to pay £96.4m for Ottakar's last year, before letting the offer lapse when authorities stepped in and referred it for a full competition enquiry.

With the shadow of that probe now lifted, and a tie-up cleared last month by the Competition Commission, analysts believe HMV will proceed with a new bid - albeit at a lower price.

Mr Waterstone set up the book chain that bears his name in 1982 and revealed yesterday that he would install himself as chairman if he secured control, with former Penguin UK boss Anthony Forbes Watson taking the role of chief executive.

His indicative offer - equivalent to 70p per HMV share - was first made in February and finance has been secured.

Mr Waterstone conceded that he was paying a very full price to regain control, especially as Waterstone's was facing an uphill struggle to win back market share from online booksellers, such as Amazon, and supermarkets.

But relationships with the publishing industry had been badly damaged by the battle for Ottakar's and HMV would not be as well-placed to repair them, he said.

Publishers and authors lobbied the Competition Commission to block the takeover on the grounds that quality and choice would fall.

In Darlington, Waterstone's opened a store in High Row, opposite the Ottakar's shop in the Cornmill Centre.

In Harrogate, North Yorkshire, both booksellers have sites in James Street.