Mergers & acquisitions

No Way Huawei?

11:05 AM -- As one would expect, Huawei Technologies Co. Ltd. reportedly did bid for Motorola Inc. (NYSE: MOT)'s wireless business as well as for 2Wire Inc. last month. But the Chinese vendor's offers were rejected over doubts about its ability to get US government approval on the deals, according to a Bloomberg report. (See NSN to Buy Moto's Wireless Biz for $1.2B and Pace Makes $475M Move on 2Wire.)

According to the report, Huawei offered at least $100 million more than the Nokia Networks $1.2 billion offer for Motorola's wireless assets -- and much more than Pace plc 's $475 million offer for 2wire. But the sellers were concerned that the deals would fail to win or at least get tied up in lengthy US government approval processes.

Of course, Motorola's recent allegations that Huawei has stolen certain trade secrets can't have helped matters either. (See Moto Accuses Huawei of Theft.)

— Michelle Donegan, European Editor, Light Reading Mobile

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Michelle Donegan 12/5/2012 | 4:28:10 PM
re: No Way Huawei?

Huawei's efforts to get a stronger position in the US still look to be an uphill battle. What kind of concessions would they have to make to turn this situation around -- Set up a separate US company? list on a US exchange? 

paolo.franzoi 12/5/2012 | 4:28:09 PM
re: No Way Huawei?


How about remove significant ownership of the Chinese Military?  At some level, you have to realize that Huawei is a front for the Chinese government to spy on other countries.  India realized this.

Hey its a great way to go.  I assume that the NSA has cracked Cisco and Juniper routers and has code in each one to spy on folks. 




Edit - By the way, this does not mean that I think that Huawei products are not viable nor are they bad.

Jeff Baumgartner 12/5/2012 | 4:28:09 PM
re: No Way Huawei?

Huawei will certainly have a longer road to travel if it can't buy its way in and bridge the gap that way. It's made some progress on the US cable side with DTA deals with mid-sized MSOs like Suddenlink,  with Cox (with wireless), and Comcast (with IMS gear and perhaps DTAs and other types of set-top boxes). While that gets Huawei's foot in the door, those are hardly enough to move the needle for a company the size of Huawei. Regardless of the hurdles, I think it still needs to find a way to buy its way in. JB

digits 12/5/2012 | 4:28:09 PM
re: No Way Huawei?

Do you think US-made gear/software is being used to spy on comms in other countries? 


Huawei will need to do an awful lot before it gets cleared for any US acquisitions. Look at the hoops NTT had to jump through when it acquired Verio....

firstmiler 12/5/2012 | 4:28:08 PM
re: No Way Huawei?

When you offer substantially more than the accepted bid, one can only say Nuawei!

I am sure that once the Obama administration sees that a non-European bidder is getting less than preferential treatment relative to American or European firms, it will jump into "affirmative" action.  We will pass a 2000 page bill reforming our anti-asian M&A policy and open up all of our companies to government sponsored immigration, er.. I mean aquisition.


paolo.franzoi 12/5/2012 | 4:28:08 PM
re: No Way Huawei?


Yes, I believe the NSA uses US made comm gear to spy on other countries.  To not believe this would be naive.



Edit:  To add here, John Chambers is NOT a member of the US Army.  Huawei on the other hand.....

quicktime 12/5/2012 | 4:28:00 PM
re: No Way Huawei?


  Who said Huawei is owned by China military?  Any evidence to prove that?

  Ignorant people just spread roumor without researching the fact. It's good

  to objective and beat them using your edge instead of using rumors.



macster 12/5/2012 | 4:27:59 PM
re: No Way Huawei?

Asian company. Successful Asian company. This cannot be! Something must be wrong!

So, HW is bad. A "front" for the Chinese government. What else? Zhongxing is evil? Another tool for world conquest?

American and European companies are the model of goodness!

ohub 12/5/2012 | 4:27:59 PM
re: No Way Huawei?

In year 2000, telecom may be high-tech, but it has been become very mature in various aspects in these years from components to software. Now the competition between the existing companies mainly focuses on prices. In addition, government may also play some role to prevent some companies like Huawei to enter North American major market. But in the long term, prices will determine everything; Remember it is a market rule. Wake up, rumors would not help!

paolo.franzoi 12/5/2012 | 4:27:58 PM
re: No Way Huawei?

The founder and Chairman of Huawei is a General of the PLA.


Not a rumor and I do not compete with them.




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