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Huawei May Sell Stake in Mobile Devices Unit

Sina Tech, 5/08/08

Informed sources have revealed that Huawei is considering selling a multi-billion dollar stake in its mobile devices division to a foreign investor able to help it enter the North American market.

The sources claim that the transaction is still in the early planning phase, but that if successful it will rank among the largest investments in a Chinese company by a foreign investor. Towards the end of this month, Huawei plans to invite strategic investors and private equity firms to make offers for a large portion of its mobile devices division, with the possibility that one foreign company could obtain a controlling interest in the division. It is claimed that Huawei plans to sell off its mobile phone, laptop, wireless data-card and home router businesses.

The move by Huawei will help strengthen the company's relationship with U.S. service providers.

Last year, Huawei launched a failed USD 2.2 bln bid with private equity firm Bain Capital Partners to acquire U.S. network equipment manufacturer 3Com. The deal fell through due to opposition from various U.S. government departments concerning 3Com's agreements to provide the U.S government with anti-hacker and other network security services.

Keywords: strategy financing data card foreign investor Huawei mobile phone wireless notebook


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