Chinese regulators reject Tengzhong's Hummer bid -source

HONG KONG/NEW YORK Feb 24 (Reuters) - Chinese regulators have rejected a controversial bid by Tengzhong, an obscure industrial equipment maker, to buy GM's [GM.UL] money-losing Hummer brand, a person close to the companies said on Wednesday.

Sichuan Tengzhong Heavy Industrial Machiner Co, based in China's Sichuan province, was believed to be lobbying behind the scenes for regulatory approval ahead of an end-February deadline to close the deal.

Officials at the Ministry of Commerce, which must approve the deal in China, had said repeatedly in recent weeks that they had yet to receive any formal application from Tengzhong.

The source told Reuters the government had rejected the deal, but that Tengzhong and GM were still looking at alternatives.

Another source close to the companies told Reuters on Tuesday that Tengzhong could use an offshore vehicle to acquire Hummer, which would allow it to skirt Chinese regulators. [ID:nTOE61M045]

(Reporting by Jui Chakravorty and Doug Young; Editing by Ken Wills)