Read How Alibaba's Unigroup Takeover Hits Roadblock Due To Tougher US Regulatory Norms

Alibaba Group Holding Ltd BABA led an effort to acquire China's troubled Tsinghua Unigroup Co has hit a last-minute hitch, Bloomberg reports.

• Instead, Unigroup may turn to JAC Capital, a Chinese semiconductor investment fund that has also bid to rescue the obliged chipmaker.
• The Alibaba consortium, which includes funds backed by the Zhejiang government, had proposed a deal of over 50 billion yuan ($7.8 billion) to help keep the chipmaker afloat. Any agreement would likely include conditions for restructuring Unigroup's roughly 100 billion yuan-plus of onshore and offshore debt.
• Alibaba's stock listing in the U.S. has raised recent concerns.
• 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 Alibaba owned it.
• The fate of Unigroup has become a national security issue as China's President Xi Jinping advances a strategy for self-sufficiency in crucial technologies in competition with the U.S.
• Related Content: Here's How Alibaba And China Are Set To Gain From Unigroup Takeover
• Price Action: BABA shares traded lower by 0.28% at $124.73 in the market session on the last check Thursday.