Carl Icahn has intensified his bid for control of Lionsgate and raised his offer for outstanding common shares from $6.50 to $7.50 per share.

It is understood the hostile takeover bid will only proceed on this new basis if Lionsgate reverses July’s debt-for-equity swap that diluted Icahn’s position from 37.9% to 33.5% and increased the ownership position of Mark Rachesky.

This means Icahn would require the studio to either go back on the share issue to Rachesky or convert his shares into non-voting stock. Icahn has also appealed to the Supreme Court of British Columbia to reverse the swap.

The offer will expire on October 22. Lionsgate’s board will consider this latest gambit ahead of the annual general meeting later this year. The market responded to Icahn’s offer earlier on Tuesday [31] as shares climbed to $7.31.