Sinochem Group, China's biggest chemicals trader, is in talks with sovereign wealth funds and Canadian pension funds to mount a counterbid to a US$39 billion hostile takeover of Canadian fertilizer giant PotashCorp by BHP Billiton, the Financial Times reports.

An insider said that Sinochem has approached Singapore's Temasek Holdings and several Canadian pension funds, including Alberta Investment Management Corp. Alberta is said to be considering Sinochem's proposal but Temasek has yet to show any interest.

China Investment Corp., China's sovereign wealth fund, is also expected to provide financing for a Sinochem bid.

If Sinochem buys PotashCorp, it will be the biggest overseas deal in the group's history.

China's business press carried the story above on Friday. China.org.cn has not checked the stories and does not vouch for their accuracy.

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