Kraft Foods is expected to sweeten its offer for British confectioner Cadbury PLC.
Two London newspapers said Sunday that Kraft would raise its bid to 820 pence per Cadbury share, or about $13.33, from 771 pence.
Kraft Foods Inc.’s first offer was valued at 10.3 billion pounds, which Cadbury rejected as “derisory.”
The newspapers, The Sunday Times and The Observer, said Kraft plans to increase the cash portion of its cash-and-stock bid.
Under British takeover rules, Northfield, Ill.-based Kraft has until Tuesday to raise its bid.
Cadbury Chairman Roger Carr said last week that The Hershey Co. also had expressed an interest in bidding for Cadbury, but had not made a formal offer.