THE planned takeover of WH Smith may have hit a stumbling block.

The troubled high street chain, which earlier this year issued a profit warning and announced it would be sacking 300 people from its headquarters in Greenbridge, is subject to a £940 million takeover bid by venture capital group Permira.

Permira has been going through WH Smith's books for the past four weeks as it carries out due diligence tests and research.

There is a £215 million gap in the retail chain's pensions, which would be reduced to £151 million after tax.

Former WH Smith chairman Martin Taylor now oversees the pension fund's trustees, and is insisting the gap be filled by Permira immediately if the takeover goes ahead.

This is to ensure that in a worst case scenario, if Permira were to become bankrupt, it would be able to discharge its duties to the pension trust.

It is unclear whether Permira will agree to the development.

WH Smith spokeswoman Louise Evans said the matter was between the pension trust and Permira, and negotiations were being carried out independently of the retailer.

She could not say how long the takeover discussions would take.

Permira was unavailable for comment.