Huawei and Bain Capital: I Can’t Quit You

Posted on June 8, 2008
Filed Under China Business, Mobile, Wireless Networks |

The South China Morning Post reports (from Reuters):

Bain Capital and TPG Capital are among private equity firms lining up to bid for a stake in the mobile devices unit of Huawei Technologies. The unit produced revenue exceeding US$2 billion last year, more than double the previous year, according to sources.

Privately held Huawei has hired Morgan Stanley to sell a majority stake in the unit, which makes mobile handsets, data cards for laptops, and routers for home use. While the process is in its early stages, with first-round bids due at the end of this month, sources said private equity interest was heavy in what would be one of the largest inbound acquisitions in the mainland so far this year.

Huawei and Bain were last entangled over their attempt at acquiring 3Com, but now Bain is the suitor.

The handset market in China is fairly brutal. If the deal gets consummated, Bain better be ready to cowboy up.

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