US equity firms shop for stake in Huawei unit

21 July 2008

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.