Mumbai: Some of the US-based equity firms have teamed up into two separate groups to bid for a stake in a unit of China's Huawei Technologies, in a deal that could be worth over $2 billion, sources involved in the process said.

Huawei, currently one of the fastest-growing mobile devices companies in the world, is planning to expand into the United States.

One group comprises Silver Lake and Providence Equity Partners while the other group have AEA Investors and General Atlantic, according to sources involved in the process.

At $2 billion, this could be the second-largest private equity deal in China after ICBC's acquisition by an investor group comprising Goldman Sachs.

Private equity firms including Silver Lake, AEA, Bain Capital, Goldman Sachs' private equity group and Kohlberg Kravis Roberts & Co have made it through round one of the Huawei auction, sources said.

Sources said bidders are reviewing financial documents for due diligence, and another round of offers is expected in the next few weeks, adding, the teams can change and bidders can drop out any time.

Privately held Huawei, which is teaming up with a US partner to bolster its presence in the US, hired Morgan Stanley in May to sell a majority stake in the unit.

The unit will have five business divisions, including those for mobile handsets, data cards for laptops, and routers for home use.

Huawei's mobile devices unit doubled revenues last year to more than $2 billion, sources said.

Huawei had teamed up with Bain Capital last year to bid for US telecoms gear maker 3Com, but the deal was abandoned after US regulators blocked it.