COMPANY TOWN ANNEX

Blockbuster’s Credit Tripled: Blockbuster Entertainment Corp. said its lenders agreed to triple the size of its credit agreement to $1 billion, leading to speculation that the firm may use the funds to help Viacom Inc. sweeten its $10-billion bid for Paramount Communications Inc. Blockbuster had previously agreed to purchase $600 million of Viacom stock to assist Viacom’s initial bid for Paramount, but Blockbuster said the timing of the credit line increase had no connection to the takeover battle. Viacom’s other partner is regional telephone company Nynex Corp., which agreed in November to put up $1.2 billion of the Viacom bid. Viacom is reportedly seeking more money to counter QVC’s latest offer of $10.26 billion, but the difference between the two bids--both part cash and part stock--continued to narrow Tuesday as investors, worried about QVC’s costs in the deal, drove QVC stock down $1.625 a share to $37.875. Viacom Class A shares fell 87.5 cents a share to $50, and Viacom Class B eased 12.5 cents a share to $46.50. Paramount fell 25 cents to $77.875 a share. Viacom has until Jan. 7 to counter QVC’s offer.