China's insurance regulator could reject a bid by insurer Anbang to buy Starwood Hotels according to Chinese financial magazine Caixin.
It said the bid would put Anbang's offshore assets above a threshold for overseas investments.
Starwood, owner of the Sheraton and Westin brands, has accepted a sweetened $13.6 billion acquisition offer from rival Marriott International, spurning Anbang Insurance Group's latest bid.
Caixin said on its website that China's insurance regulator "clearly has an attitude of not supporting" Anbang's bid, as Anbang's overseas investments have already reached a "red line" of not having more than 15% of their assets invested overseas.
The magazine cited unspecified sources for its story.
