Blockbuster threatens hostile takeover of rival.(The Dallas Morning News)

Byline: Crayton Harrison

DALLAS _ Blockbuster Inc. raised the stakes Tuesday in its pursuit of rival Hollywood Entertainment Group Inc., threatening a hostile takeover if Hollywood's board doesn't start negotiating.

Analysts said Dallas-based Blockbuster wants to move quickly to avoid a drawn-out battle for Hollywood, which has two other suitors.

"Blockbuster is serious about what it's trying to do," said Arvind Bhatia, an analyst with Southwest Securities. "It's not going to wait."

Blockbuster began dangling a $700 million offer in front of Hollywood last month.

The smaller movie-rental chain's 1,900 stores could help Blockbuster …