Thursday, May 08, 2008

China's Huawei may sell stake in mobile devices unit to enter US market

Chinese telecommunications equipment maker Huawei Technologies Co. plans to sell a multibillion-dollar stake in its mobile devices division to a foreign investor in a bid to enter the North American market, the Wall Street Journal reported on Thursday, citing unnamed sources.
The sale, which could rank among the largest foreign investments in a Chinese company, is at an early stage, the paper said.

Huawei will invite bids from potential investors later this month.

The Journal said the transaction is expected to be less controversial than Huawei's failed joint bid for 3Com Corp. That deal collapsed because of fears U.S. regulators would reject it on national security grounds.

Huawei's core business is network equipment. The assets up for sale include Huawei's mobile-telephone handset business, data cards for wireless networks and routers for home use.

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