Carl Icahn, the activist investor, on Tuesday offered to limit losses for bondholders that join him in an 11-hour attempt to block a restructuring plan for CIT, the US commercial lender.

The offer from Mr Icahn, who claims to be the largest holder of debt issued by CIT, is the latest salvo in a war of words between the investor and the company, which is struggling to win bondholder support for a debt exchange or prepackaged bankruptcy plan.