Huawei to outbid 3Com for JV

Huawei Technologies, China's largest telecommunications equipment maker, plans to make a counter-offer to buy out its joint venture partner 3Com after the US firm placed a bid to acquire the Chinese company's stake Thursday, the South China Morning Post reported, citing market sources. Computer network equipment maker 3Com's bid for its partners 49% stake in Huawei-3Com valued the venture at US$2 billion, sources said. Huawei is required to respond within three days with an offer that is at least 2% higher on a per-share basis, according to a US Securities and Exchange Commission filing from 3Com. Huawei had originally valued the venture at US$1.5 billion to US$2 billion, sources said. Huawei, should it end up the sole owner, plans to sell a majority stake to a private equity group. 3Com is also in talks with private equity groups about taking a stake should it come out the sole owner.