China's Sinochem Corp is having initial talks with banks to fund its probable bid for all or a portion of Potash Corp of Canada (POT. TO), in a deal that China is serious about, for bring down BHP Billiton Ltd's (BLT. L) hostile bid worth $39 billion.

Sinochem has hired Citigroup (C. N) and Deutsche Bank (DBKGn. DE) to look into matters and destroy BHP's bid, and has not been actively looking for cash, though it has been taking loan proposals from global and Chinese banks.

In the previous month, BHP had launched the hostile $130-a-share offer to Potash (POT. N), which is the biggest fertilizer producer in the world.

The Saskatoon, a Saskatchewan-based company directly disapproved the bid as being grossly inadequate and has gone to the court against BHP in for attempting to stymie a takeover.

Sinochem was unavailable for comments immediately. An antitrust clearance has been sent to BHP by the U. S. Federal Trade Commission so that it can go on with its bid.

The American shares of Potash have reportedly profited a 0.4 percent to finish with $146.00 on Friday, which is a 12.3 percent premium to the price offered by BHP (BHP. AX).