ENERGY

California Energy Increases Bid for Magma: In what David L. Sokol, chairman and chief executive of Omaha-based California Energy described as “our best acquisition proposal,” the company has increased its offer to buy Magma Power Co. of San Diego to $38.50 a share, up from $35 a share. The offer, made Friday, consists of $28.50 in cash and $10 in California Energy stock. The move is the latest in a vigorous takeover battle between the two largest U.S. geothermal energy companies. On Monday, California Energy released its third-quarter revenue statement, which says that net earnings fell 14% from a year ago--to $14.4 million, or 38 cents a share, from $16.7 million, or 41 cents. Revenue, however, increased 27% to $58.5 million over the same quarter in 1993.