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Alibaba-Led Bid for Unigroup Hits Last-Minute Snag

An Alibaba Group Holding Ltd.-led effort to take over China’s troubled Tsinghua Unigroup Co. has hit a last-minute snag, according to people familiar with the matter, raising the prospect a rival bidder will close the deal for the semiconductor champion.

Chinese officials had been leaning toward the Alibaba consortium as recently as last month, but the e-commerce giant’s stock listing in the U.S. has raised recent concerns, said the people, asking not to be named because the talks are private. American regulators are tightening auditing requirements for U.S.-listed companies, which could expose China’s leading chip company to the disclosure of sensitive information if it were owned by Alibaba, they said.