Kraft Foods Inc. is expected to sweeten its offer for Cadbury PLC, in an effort to remain in the running as it faces a potential competing bid from Hershey Co. for the British candy maker, according to media reports.

The Sunday Times and The Observer in London said yesterday that Kraft is raising its offer to 820 pence per Cadbury share, or about $13.33, from about $12.54.

Kraft's earlier offer was valued at 10.3 billion pounds, or about $16.5 billion, which Cadbury rejected as "derisory." Under British takeover rules, Northfield, Ill.-based Kraft has until tomorrow to raise its bid.

IRAQ OKS OIL DEAL WITH SHELL, PETRONAS

BAGHDAD — Iraq gave final approval yesterday to a deal by a Shell-led consortium to develop one of its largest oil fields, marking a crucial step toward the nation's postwar rebuilding by boosting the production of its most lucrative resource.

Royal Dutch Shell PLC and its partner, Malaysia's state-run Petronas, won the right to develop the 12.5 billion barrel Majnoon field last month during Iraq's second postwar bidding round.

As part of the deal, Shell and Petronas will pay the Iraqi government a $150 million signing bonus. Shell Chief Executive Peter Voser said his company looks "forward to a good cooperation with the government," but refused to say how much money will be spent on the project.

SAUDI BILLIONAIRE MEETS WITH MURDOCH

CAIRO — A Saudi billionaire who is one of the biggest stakeholders in Rupert Murdoch's News Corp. says he is looking to expand his alliances with the media giant.

Prince Alwaleed bin Talal, a nephew of the Saudi king, met with Murdoch on Thursday, according to a statement released Saturday by his Kingdom Holding Co. Media reports say that News Corp., parent to Fox News and Dow Jones & Co., among others, may be thinking of buying a stake in Alwaleed's Rotana Media Group, which includes a number of satellite channels that air in the Middle East.