Huawei Looks To Sell Off Stake In Assets

May 2008 | Company Finance Alert

Chinese telecommunications equipment vendor Huawei Technologies is planning to sell off a 'multibillion-dollar' stake in its mobile handset division, according to The Wall Street Journal. The sale will be targeted specifically at foreign investors able to help the vendor gain access to the North American market. Entering the US market, in particular, has proven to be particularly tough for the vendor, which saw its US$2.2bn bid together with Bain Capital Partners to acquire 3Com collapse late last year. Failure to gain 3Com was due to the US government's concern over security issues, with the company retaining contracts with the state to provide security software. The M&A deal also took place during a US election year, which had criticised China's currency manipulation, safety lapses in exports and human-rights abuses.

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