Possessive form and pronouns

[MohamedM501]

Dear Experts,

I have stumbled in one of questions of SC in Manhattan guide.

During gladiator matches, the unfair match-up between a prisoner with a short sword and ten soldiers with horses and whips can drive the prisoner to a state of manic frenzy, like a rampaging bull whose rage increases when its hide is pierced with swords.

(A) like a rampaging bull whose rage increases when its hide is pierced with swords
(B) like the increased rage of a rampaging bull when its hide is pierced with swords
(C) like a rampaging bull that increases rage while rampaging with its hide pierced with swords
(D) just as a rampaging bull that increases rage by piercing its hide with swords
(E) just as a rampaging bull’s rage increases when it is pierced with swords

My Analysis:

For choices A, B & C, I would apply the general rule: 'Comma+ like' refers to the PRECEDING SUBJECT.

In A, like a rampaging bull seems to refer to the unfair match-up -- the preceding subject. It means that THE MATCH-UP is similar to A BULL.
Therefore, this comparison is illogical.
Eliminate A.

In B, like the increased rage seems to refer to the unfair match-up -- the preceding subject. It means that THE MATCH-UP is similar to THE RAGE.
Therefore, this comparison is illogical.
Eliminate B.

In C, the sentence has same problem as A
Therefore, this comparison is illogical.
Eliminate C.

In D, the meaning is wrong as it implies that the BULL is piercing its own hide with swords
Eliminate D.

Here, I'm left with only choice E but there is a problem. 'it' has no clear referent. The only logical meaning when 'it' refers to 'BULL'. However, as far as I learn, GMAT does not accept a pronoun to refer to a noun in possessive form.
Even if I consider that 'it' refers to preceding subject 'rage', the meaning would be nonsensical.

So how is choice E correct?

Thanks for help

[RonPurewal]

MohamedM501, you must be using some VERY old prep materials.

the "rule" that you're using (about possessives and pronouns)...
...has NEVER been necessary to solve a GMAT SC problem -- literally, not ever;
and
...has not appeared in any GMAC materials in the last 10 years.

so, the best course of action regarding this "rule" is to forget about it entirely.