In addition, IFM will accelerate payment terms so that Pacific Hydro shareholders who accept the offer will be paid $5.00 per share within five business days of their acceptance being processed.
As of yesterday, IFM had 35.1% voting power in Pacific Hydro, up from 31.6% when it first made its offer.
Pacific Hydro's independent directors have unanimously recommended that shareholders acccept the IFM offer and reject Spanish company Acciona's offer of $4.90 per share.
The IFM offer is due to close at 5pm (AEST) on 8 July.
Acciona's offer is due to close on 28 June, and it will have decide by Monday on whether or not to extend this deadline.
IFM is hoping that by dropping its conditions and accelerated payment terms, it might encourage Acciona to sell into the IFM bid.
Acciona has a pre-bid agreement to buy American Electric Power's stake of almost 16% in Pacific Hydro, but to trigger this deal it must first declare its own offer unconditional.
Doing this would let Acciona sell into IFM's $5.00 a share bid at a $2.4 million profit.
Pacific Hydro closed at $5.07 yesterday - seven cents more than IFM's offer.
