Business Briefing

FOOD

Kraft said to be near deal for Cadbury

Kraft Foods Inc. is close to an agreement to buy Cadbury after raising its offer 9% to about 12 billion pounds ($19.7 billion) to overcome months of resistance by the British candy maker, three people with knowledge of the matter said.

Kraft is offering 840 pence a share, including 500 pence of cash and the rest in stock, said the people, who declined to be identified because the talks are private.

Cadbury would pay shareholders an additional 10-pence dividend, the people said. Kraft’s previous bid valued Cadbury at 769 pence a share, below Cadbury’s closing share price of 808 pence Monday.

ACQUISITIONS

ADT owner to purchase Brink’s

Tyco International Ltd. has agreed to buy Brink’s Home Security Holdings Inc. in a cash-and-stock deal worth $2 billion.

Tyco said it would pay $42.50 a share for the Irving, Texas, provider of home security services, a premium of more than 35% over Friday’s closing price of $31.42.

Tyco, headquartered in Schaffhausen, Switzerland, said it would combine Brink’s with its own ADT security business. Brink’s stockholders can redeem their shares for cash, Tyco shares or a combination.

AIRLINES

American raises baggage fees

American Airlines said it is raising its fees on checked bags for passengers buying tickets starting Feb. 1.

The company said it is raising the charge for the first checked bag to $25 from $20 on flights in the U.S., Puerto Rico and U.S. Virgin Islands. The fees apply to passengers on the company’s American Airlines, American Eagle and American Connection flights.

A second checked bag will cost $35, up from $30.

EUROPE

Stock markets rise overseas

European stock markets rose Monday as speculation of a pickup in corporate deal-making kept investors interested on a day Wall Street was closed for Martin Luther King Day and Greece’s budgetary woes continued to weigh on the euro.

The FTSE 100 index of leading British shares closed up 39.02 points, or 0.7%, at 5,494.39, while Germany’s DAX rose 42.58 points, or 0.7%, to 5,918.55. The CAC-40 in France ended 23.08 points, or 0.6%, higher at 3,977.46.

-- times wire reports