Fast-food chain Yum China rejects buyout offer from Hillhouse

BEIJING - Fast-food chain operator Yum China Holdings Inc has rejected a $17.6 billion buyout offer from a consortium led by Chinese investment firm Hillhouse Capital Group, quashing what would have been one of Asia's biggest deals this year, a person with direct knowledge of the matter said.

The Hillhouse-led consortium, which would also include regional investment house Baring Private Equity Asia, expressed an interest in offering $46 per share, or nearly 24 percent above Tuesday's closing price, for the biggest fast-food chain in China, the person said.

Hillhouse has been tapping lenders to finance the deal, Reuters reported earlier this month, citing sources.