Viacom May Be Raising Ante for Paramount : Merger: Sources speculate that it is conferring with Blockbuster on an effort to top QVC’s $92-a-share bid.

The board of Paramount Communications recessed Tuesday without taking any action on rival bids from Viacom Inc. and QVC Network, leading some to speculate that the board is giving Viacom time to raise the ante.

Sources hinted that Viacom Chairman Sumner Redstone is in discussions over a financing deal that could materialize later this week.

One scenario involves Blockbuster Entertainment Corp., the giant video retailer which is seeking a greater role in software production and distribution.

Blockbuster committed $600 million to Viacom’s acquisition of Paramount in October. One industry source said the two companies may now be discussing a merger--although such talks could not be confirmed.

Nevertheless, two top executives from Ft. Lauderdale, Fla.-based Blockbuster were in Manhattan this week, along with their out-of-town counsel.

None of the executives returned a reporter’s calls.

In its only public statement Tuesday, Paramount said its directors will reconvene today

Paramount was forced to set aside a friendly merger agreement with Viacom earlier this month after the Delaware Supreme Court chastised the board for failing to consider a rival offer from the home shopping QVC network and its chairman, Barry Diller.

After the ruling, the Paramount board agreed to conduct an auction.

Both QVC and Viacom submitted bids on Monday, with offers that Paramount has vowed to keep secret in an effort to extract the highest price.

But QVC announced late Monday that it has been informed that it made the higher bid, with its offer to pay $92 per share for 51% of Paramount, and securities for the remaining 49%. By several Wall Street estimates, the QVC securities are worth about $76 or $77 per share.

Viacom kept its most recent bid a secret, but earlier had offered $85 per share in cash for 51% of Paramount. Paramount shares fell $1.75 to $80.25 on the New York Stock Exchange. Viacom A shares added 62.5 cents to close at $49.875, while Viacom B slipped 12.5 cents to close at $45.125. QVC dropped $1.50 to $42.