Motorola puts asset sale on-hold
Motorola has shelved plans to auction its largest unit, the home and networks mobility division, as the vendor rethinks its restructure strategy.
The vendor was aiming to reap $4 billion - $5 billion (€2.7- €3.4b) for the unit, but sources close to the auction claim bids have only reached the $3 billion -$4 billion mark.
Huawei Technologies is understood to be one of the lead bidders while the Arris Group is also understood to have made an offer, according to the Wall Street Journal.
Another round of bids was expected to be due in mid-February, but Motorola will be deciding its next steps during a board and management meeting this week. One of the three banks advising Motorola on the sales process, Goldman Sachs, has told bidders that the vendor does not want to sell the unit to a private-equity firm alone.
Last week , Motorola confirmed that it had sold its cable modem business to Taiwan's Compal Broadband Networks for an undisclosed amount.
The Euro Docsis CPE business includes access to Moto's standalone Docsis modems as well as its voice-optimized embedded multimedia terminal adapters (EMTAs), and WiFi-enabled broadband gateways. Motorola is currently the world's largest supplier of Docsis devices.