From FI:
" It’s reported Milan spoke to Real Madrid today for Mateo Kovacic, but a loan bid was rejected.
The Rossoneri are looking to strengthen their squad, but are limited in what they can do until a Chinese takeover is completed.
It was reported this morning that Kovavic is under consideration, possibly a transfer with a buyback clause as Juventus did with Alvaro Morata.
According to Sky, CEO Adriano Galliani called Madrid President Florentino Perez to discuss a potential move for Kovacic, but was told a loan move is out of the question.
Los Merengues paid €29m to bring the Croatian international from Inter last summer, so are not willing to see him leave on loan. "