BBC chief may unlock Woolies' bid

FORMER BBC executive Rupert Gavin is ready to buy Woolworths' highly-profitable DVD and video sales operation, 2 entertain, in a move that could boost venture capital firm Apax's hopes of winning its bid for the High Street retailer.

Gavin, who quit as chief executive of the Corporation's commercial arm BBC Worldwide last autumn, is understood to have already lined up financing for 2 entertain, which he helped set up.

The operation - 60% owned by the BBC and 40% by Woolworths - also sells BBC programmes such as hit comedy show Little Britain and popular drama Cutting It on DVD.

Turnover at 2 entertain is about £200m a year, with annual operating profits of about £40m. The whole operation could fetch more than £300m.

Gavin's involvement could be crucial to the success of Apax's approach. If the venture capital group can strike a deal to sell Woolworths' stake in 2 entertain immediately, it would not have to spend as much money to acquire the retailer.

Woolworths received a fresh takeover approach from Apax on Friday pitched at 58.2p a share, valuing the company at £822m. Apax is now examining Woolworths' books and has until May 6 to decide whether to make a formal bid.