China's Huawei plans to sell undersea cable business

A man walks past a Huawei company logo outside the entrance of a Huawei office in Wuhan, Hubei province, October 9, 2012. REUTERS/Stringer

Huawei Technologies Co Ltd plans to sell its undersea telecom cable business, showed a buyer’s filing on Monday, in its first major asset sale since the United States ratcheted up accusations of the Chinese firm being a vehicle for espionage.

Hengtong Optic-Electric Co Ltd, an optical telecommunication network products company based in Jiangsu province, said in the filing to the Shanghai Stock Exchange that it signed a letter of intent with Huawei Technologies subsidiary Huawei Tech Investment Co Ltd on May 31 to buy its 51% stake in Huawei Marine Systems Co Ltd via cash and share issuance.

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