Frontline Ltd. lifted its hostile takeover bid for rival ICB Shipping AB, but its new offer was shot down in flames.

Bermuda-registered Frontline, controlled by Norwegian shipper John Fredriksen, raised its offer for ICB to 130 crowns from 115 crowns for every vote-strong A-series share. It left its bid for B shares unchanged at 115 crowns.

But ICB Shipping quickly knocked back the new offer.

"This does not reflect the full value of ICB,'' chairman Clarence Dybeck told Reuters.

Fredriksen's Frontline is battling Dybeck for control of the Swedish group -- and analysts expect Fredriksen to win.

"You never know what will happen but I believe Frontline will make it in the long term,'' said analyst Cato Hellstenius of Handelsbanken.

Frontline launched a cash and scrip takeover for ICB on September 1 but this was rejected outright by ICB's board. It then changed its bid to 100 percent cash.

As Frontline bought up more and more shares -- it now holds 51.7 percent of share capital and 31.4 percent of voting rights -- Dybeck turned to the Greek Angelicoussis family in what analysts interpreted as a bid to escape Fredriksen.

ICB said it proposed to acquire the Angelicoussis' tanker business, Astro Tankers, in a deal that involved a new share issue and would give the Greek family 29.6 percent of ICB's future capital and votes.

Dybeck said shareholders holding about 40-45 percent of current votes, and in addition some large US funds, supported ICB's decision to fight the bid as too low.

"Someone in the group around Clarence Dybeck must embrace the `enemy' for Frontline to get more than 50 percent (of votes),'' Hellstenius said.

ICB's A-series share was trading ten crowns higher at 140 crowns on the Stockholm bourse.

As the market price was higher than the bid price, analysts were divided over whether the offer would succeed.

"It's a money matter so the bid price might have to increase further and I think they will raise the bid once more. Maybe 140-150 crowns could be reasonable,'' said Hellstenius.

Ulf Torgrimson at Skandiabanken said the price was fair.

"I have said earlier I think 130 should be enough and find it hard to believe that anyone would turn it down, apart from Clarence (Dybeck) and his associates,'' he said.