RUSSIAN fertiliser company Phosagro is planning to bid for Potash Corp, according to a media report, rivaling BHP Billiton's US$39 billion offer which awaits a crucial ruling from the Canadian government.

Phosagro Chairman Vladimir Litvinenko has asked Russian Prime Minister Vladimir Putin to approve a potential deal and request financing from Russian banks, Russian business daily Vedomosti reported yesterday. The report reignited speculation about a possible bidding war in the world's biggest takeover for 2010 and came on the day Canada is expected to tell BHP whether it will approve or reject the deal.

Vedomosti, citing a letter from Litvinenko to Putin, said it was unclear how much Phosagro planned to bid for Potash.

Phosagro was not immediately available for comment on the report while BHP and Potash declined to comment. Analysts said it appeared unlikely Phosagro had the financial firepower to make a rival bid.

"I wouldn't have thought they've got the size to bid for Potash Corp," said a Sydney-based analyst, who declined to be named.

Russia's biggest fertiliser companies, Uralkali and Silvinit, would be the only ones that could bid for Potash, the analyst said, adding that Phosagro would most likely be interested in Potash's phosphates business.

Two Canadian newspapers reported on Tuesday that bureaucrats were advising the government to allow BHP's bid for the world's largest fertiliser market although rumors swirled in the markets that Ottawa would block it.

Canada was expected to announce whether it will block BHP's foreign takeover bid for Potash yesterday after markets close.