As per reports in Chinese media, Chinese steelmakers and Beijing have already mapped out three solutions to spoil BHP Billiton's takeover bid for Rio Tinto for fear of losing what little clout they have in determining prices if the two forces merge.

The report cited Mr Jia Liangqun chief analyst of MySteel as saying to Oriental Morning Post that a consensus has been reached among the central government and leading steel mills. Mr Jia said that "Chinese mills are definitely to take move and that both the top government and steelmakers have already achieved a consensus. The point is finalizing the option and take move after reviewing the situation."

As per earlier reports
1. Chinese steel majors are likely to form a consortium and launch a rival bid for Rio Tinto
2. Invite foreign partners for the takeover bid
3. Could buy big chunks of both BHP and Rio Tinto stock to gain board seats and wield operational influence.

The rumor has that Chinese steelmakers involved in the bid have already hired China International Capital Corporation and Bank of China as consultants for the potential offer, which has yet to be confirmed by the above.