WASHINGTON — The budding economic recovery isn't getting much help from the home-building industry, which normally creates jobs and drives growth when a recession ends.

Uncertainty over whether a homebuyer tax credit would be extended weighed down construction last month — a sign of how much the fledgling recovery depends on government support.

Home building unexpectedly plunged to its lowest point since April, the Commerce Department said yesterday. The figures show builders fear there aren't enough buyers to soak up the glut of unsold homes already on the market — a supply magnified by record-high foreclosures.

HERSHEY, FERRERO JOIN IN CADBURY BID

HARRISBURG, Pa. — Hershey, hoping to expand its overseas presence, has lined up a potential partner as the most recognizable name in American chocolate considers starting a bidding war for British candy maker Cadbury PLC.

Italian candy maker Ferrero International SA could give The Hershey Co. the financial firepower to top a $16.4 billion hostile bid by Kraft Foods Inc.

Hershey and Ferrero said yesterday they are considering a possible offer for Cadbury.

Cadbury said it will consider any serious offer that delivers full value for the company. That would mean more than Kraft's bid, announced Nov. 9, which it dismissed as "derisory." Now that Kraft may have competition, analysts say the price for Cadbury is likely to go higher.

LAWMAKERS CALL FOR REVIEW OF FED

WASHINGTON — A group of House Democrats are stepping up demands for greater transparency from the Federal Reserve after reports that the Fed mishandled the bailout of insurance giant American International Group Inc.

The group, led by Rep. Elijah Cummings, D-Md., wants a congressional review of the Federal Reserve system. They want to allow congressional audits of the Fed as part of financial rules being debated by the House Financial Services and Senate Banking committees, according to a letter yesterday to the committees' chairmen.

Details on which banks benefited from AIG's bailout never would have become known without demands from Congress, and a recent report shows flaws in the Fed's structure as a regulator, the lawmakers wrote.

AETNA TO CUT MORE THAN 1,000 POSITIONS

INDIANAPOLIS — Health insurer Aetna said yesterday it will cut 625 jobs immediately, or nearly 2 percent of its staff, and will make a similar number of cuts by the end of the 2010 first quarter due to the lagging economy and the potential impact of health care reform.

Hartford, Conn.-based Aetna trimmed 977 jobs last December and currently has about 35,500 people. Several other large insurers, including Indianapolis-based WellPoint Inc. and Philadelphia-based Cigna Corp., also have announced cuts.

Health insurers have faced growing financial pressure in the past few quarters as corporate job cuts have trimmed the number of people covered by employer-sponsored health insurance.

DELTA, ALLIANCE OFFER $1B FOR JAL STAKE

TOKYO — Delta Air Lines and its alliance partners said yesterday they are making a billion-dollar offer to lure loss-making Japan Airlines from its affiliation with American Airlines.

Delta is "by far the strongest partner for Japan Airlines," company president Edward Bastian told reporters in Tokyo, escalating the tug-of-war for a minority stake in Japan's flagship carrier.

The offer from Delta and the SkyTeam alliance includes a $500 million capital investment, $300 million in short-term revenue guarantees, and $200 million in asset-backed financing for the airline, known as JAL.

SkyTeam would also cover the entire cost for Japan's flagship carrier to transfer from American's oneworld alliance, estimated by Delta to total $20 million.