Tim Waterstone's third attempt to buy back the bookstore chain he founded has collapsed after his bidding consortium pulled its £280m (€405m) offer, blaming "unacceptably onerous" conditions laid down by the bookseller's owner, HMV. Both sides of the deal blamed each other for the collapse.

Sources close to Waterstone told Financial News this morning that conditions set by HMV were "not acceptable to any member of the acquisition consortium".