The worsening worldwide economy has claimed another victim as Chinese networking equipment gear Huawei said it would indefinitely postpone selling part of its wireless terminals manufacturing unit because of what it called the "current global market conditions and prevailing economic uncertainty."
Another clue why the manufacturer is pulling back was posited in the Wall Street Journal which said that only Bain Capital and Silver Lake, among companies invited to bid, put out the effort and that those bids fell short of the $4 billion Huawei was expecting.
For Huawei, this is just another hassle. Last year the Chinese company tried to team with Bain to buy 3Com but lost out when the U.S. government objected to the company potentially having access to information about 3Com products used in U.S. defense contracts.
For more:
- see this article
Related articles:
Report: Huawei to sell mobile devices unit
Huawei to start accepting bids for handset unit