Potash Holds Talks With Sinochem

Potash has held discussions with China's Sinochem, said a source close to the matter on Monday, as the Canadian fertilizer producer looks for options to BHP Billiton's $38.6 billion hostile bid.

"One wants to explore all the options and you can't do that by telekinesis," said the source, who asked not to be named. Separately, a second source confirmed that Potash was considering joint ventures with third parties as one possible option.

Earlier on Monday, Bloomberg, citing a person with knowledge of the matter, said Sinochem, as well as Brazil's Vale, had made inquiries with the board of Potash late last week about the possibility of talks.

Potash declined to comment. A Sinochem official did not have any knowledge of the reported contact with Potash. Vale had no comment.

In a statement issued on Monday, Potash said it has been approached by, and has initiated contact with, a number of third parties who have expressed an interest in considering alternative transactions.