Reuters reported that China's state owned Sinochem Corporation has invited Temasek to join a consortium that may bid for Canada's Potash Corporation.

The move follows an order by Chinese officials for state companies to meet investment bankers to explore ways to block BHP Billiton's USD 39 billion hostile bids for Potash Corporation.

Further raising pressure on BHP to sweeten its bid, Potash Corporation said that it had contacts with several other parties that had shown interest in possible transactions. It has called the Anglo Australian miner's USD 130 per share offer grossly inadequate.

Mr Bill Doyle CEO of Potash Corporation said that a number of third parties have already expressed interest in alternative transactions, some whom we approached and others, who initiated contact on their own.

The source said that Singapore's Temasek which manages USD 134 billion in assets has made no decision on whether it will join a consortium, as proposed by the Chinese chemicals group. It was unclear if a bid to buy a blocking stake or to make a full counter offer was under consideration.

An Asia based resources banker said a Sinochem led consortium would have difficulty mounting a successful approach for Potash Corporation because of political opposition in Canada. For that reason, a consortium might need to bring in non Chinese investors to make a bid more palatable.

Temasek which had high exposure to banks at the start of the global credit crisis is looking to diversify its portfolio with investments in miners and energy companies.

(Sourced from Reuters)