An investment fund led by billionaire US investor Carl Icahn said on Wednesday that it has raised its stake in South Korea's top cigarette maker, KT&G Corp, to have a bigger voice in the firm's management.

Icahn Partners Master Fund LP said in a filing to the regulatory financial supervisory service that its stake in KT&G has risen to 7.34 per cent from 6.72 per cent in late March. KT&G is facing a hostile takeover bid from US investors Icahn and Warren Lichtenstein, as well as pressure to sell its lucrative ginseng unit and other non-core assets to boost share price. (pi)