Vodafone manufacturer Huawei can’t find a buyer
Chinese telecoms-kit giant Huawei is blaming the disastrous world financial markets why it can’t find a buyer for its handset division, potential buyers have been pulling out and Huawei is left with undervalued bids.
Huawai made the decision to sell its handset division back in May and hired Morgan Stanley to find a majority-shareholding in the business that’s estimated value is around $2 billion. But the Financial Times reports that everyone besides Silver Lake the US investment firm and Bain Capital have pulled out and the two companies that still remain interested in Huawei are only offering 75 percent of what the company is looking for.
Chinese Huawai core business is supplying telecommunications infrastructure not making handsets. The company has made handsets for Vodafone and with the China making their own variant of 3G technology there will be a large increase in the domestic market over the next few years.
The realization that companies naturally steer clear of making big investments in troubled times can’t be the greatest news for forthcoming Motorola’s split. Shares in PCCW the fixed-line operator in Hong Kong have dropped significantly according to the FT.