Blockbuster CEO says can pay cash for Circuit City

NEW YORK (Reuters) - U.S. movie rental chain Blockbuster Inc (BBI.N: Quote, Profile, Research, Stock Buzz), which has proposed to buy electronics retailer Circuit City Stores Inc (CC.N: Quote, Profile, Research, Stock Buzz), said on Monday that it is "very confident" it can complete the deal on a cash basis.

Blockbuster Chief Executive Jim Keyes also said that synergies (or cost savings) from the deal would come from "combining systems and back office operations, and from the rationalization of the companies' real estate. These are synergies unavailable to both companies on their own today."

On a conference call with reporters Keyes also said the company has discussed its bid, worth up to $1.3 billion, with Blockbuster shareholder Carl Icahn and has his support.

(Reporting by Franklin Paul, writing by Martinne Geller; Editing by Steve Orlofsky)