The Australian Financial Review's Street Talk column first mentioned that Sinochem had been sidling up to Nufarm nearly four weeks ago, but it seems the market has been discounting the prospect of any formal bid being put on the table.

Nufarm is thought to be advised by JPMorgan, which conducted the company's most recent capital raising, when it tapped investors for $300 million at $11.25 a share.

Interestingly, RBS worked with JPMorgan advising on the capital raising but seems to have now turned up sitting across the negotiating table.

Informal discussions between SinoChem and Nufarm are thought to be continuing. If that's correct, things must soon reach the stage where some announcement to the exchange about the talks will need to be made, perhaps in response to a more formal offer.