Feeds

Huawei drops 3Leaf buy

Capitol Hill says no

Application security programs and practises

Chinese telecoms equipment manufacturer Huawei has withdrawn from its controversial takeover deal for US server firm 3Leaf Systems following objections from US politicians and regulators.

The modest $2m (£3.1m) deal was agreed in May 2010 but not immediately disclosed at the time. Overseas ownership concerns prompted an investigation of the deal by the Committee of Foreign Investment in the United States, which raised objections that prevented the deal from completing.

Rather than fight the decision, Huawei has decided to abandon its interest in 3Leaf.

The allegedly close ties between Huawei and the Chinese People Liberation Army (PLA) have created problems for previous commercial deals by the telecom and network equipment firm. Most notably the $2.2bn 2007 deal by Bain Capital to buy 3Com with minority financing from Huawei Technologies fell through because of regulatory opposition.

Most of this opposition stemmed from concerns about letting a Chinese firm gain access to the TippingPoint IPS system used to protect government departments that formed part of 3Com's portfolio. 3Com was eventually sold to HP for $2.7bn in 2009.

Politicians and intelligence agencies in Australia, India and the UK have all expressed concerns about giving the go-ahead for local carriers to use Huawei's kit. The opposition Conservatives lobbied against a proposed deal by Huawei to buy Marconi back in 2005, for example.

Former Home Secretary David Blunkett voiced concerns about the security implications of BT sourcing a sizeable proportion of its kit from Huawei back in 2009. Despite this, BT remains a major customer.

Huawei is in the running to sell equipment that would extend mobile networks to the London underground in time for next year's Olympic Games, the BBC reports. ®

Eight steps to building an HP BladeSystem

More from The Register

next story
Sysadmin Day 2014: Quick, there's still time to get the beers in
He walked over the broken glass, killed the thugs... and er... reconnected the cables*
Apple fanbois SCREAM as update BRICKS their Macbook Airs
Ragegasm spills over as firmware upgrade kills machines
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
SHOCK and AWS: The fall of Amazon's deflationary cloud
Just as Jeff Bezos did to books and CDs, Amazon's rivals are now doing to it
EU's top data cops to meet Google, Microsoft et al over 'right to be forgotten'
Plan to hammer out 'coherent' guidelines. Good luck chaps!
US judge: YES, cops or feds so can slurp an ENTIRE Gmail account
Crooks don't have folders labelled 'drug records', opines NY beak
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
Manic malware Mayhem spreads through Linux, FreeBSD web servers
And how Google could cripple infection rate in a second
prev story

Whitepapers

Top three mobile application threats
Prevent sensitive data leakage over insecure channels or stolen mobile devices.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.