Billionaire corporate raider Carl Icahn on Monday launched a bidding war for the bankrupt Fontainebleau Las Vegas, pledging about $155 million to set the minimum price for the unfinished casino hotel.

By doubling a rival's offer, Icahn won the right to be the opening bidder for the project when a Miami bankruptcy court holds an auction for the 63-story tower in January.

Penn National Gaming, a Pennsylvania casino operator, last week offered a $105 million opening or ``stalking horse'' bid for the Fontainebleau. It initially tried to beat Icahn's offers during a hearing Monday but stopped at $145 million.

Under an offer outlined in court, Icahn would bid $105 million for the Fontainebleau, plus loan up to $50 million to pay for the project's bankruptcy expenses through the sale. Other bidders could offer more, and Icahn would have the option of topping those bids.

``We're very interested in pursuing this transaction,'' Icahn lawyer Farrington Yates told Miami bankruptcy Judge A. Jay Cristol. Cristol approved the broad outlines of the Icahn plan, which Fontainebleau lawyers endorsed, clearing the way for a Jan. 21 auction.

``We need to go forward in every direction we can to maximize the value of this property,'' Cristol said.

Icahn's sudden entry into the Fontainebleau proceedings brought a surprise twist to a faraway real estate debacle that's been closely watched in South Florida for its ties to the region's largest resort.

Fontainebleau Miami Beach owner Jeffrey Soffer launched the Vegas venture in 2007 in an effort to create a global chain of Fontainebleau casino resorts. The Fontainebleau Miami Beach is not a part of the Vegas bankruptcy case.

Icahn is already trying to buy Atlantic City's Tropicana Casino and Resort in a bankruptcy auction for $200 million. In the past, he's bought bankrupt casinos for distressed prices and then resold them for big profits. But he's best known as a corporate activist, who uses his stakes in public companies like Yahoo, Time Warner and Blockbuster to pursue changes in management and strategy.

Icahn's pursuit of the Fontainebleau Vegas could signal even wider interest in the insolvent venture. A Fontainebleau Vegas investment banker said Monday he has spoken to 17 businesses interested in the project.

Roughly $2 billion has already been spent on construction and development of the Vegas project; an additional $1 billion or more is needed to finish. Contractors on the project claim more than $600 million in unpaid bills.

Lenders cut off funding for the Vegas project in the spring.

``I don't believe we have any other options but to walk away from this asset,'' Howard Karawan, chief operating officer of Fontainebleau Resorts, testified Monday.