China's Huawei to sell undersea cable business, buyer's exchange filing shows

HONG KONG (Reuters) - China’s Huawei Technologies Co Ltd plans to sell its 51% stake in undersea telecommunications cable business Huawei Marine Systems Co Ltd, according to an exchange filing from the Chinese buyer on Monday.

Hengtong Optic-Electric Co Ltd, an optical communication 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 the stake via cash and share issuance.

It did not mention a price.

Huawei Technologies declined to provide immediate comment when contacted by Reuters. Trading of Hengtong Optic-Electric shares was suspended on Monday pending deal discussions.

The potential sale comes as Huawei Technologies’ main business of selling telecom network equipment and smartphones is under intense global scrutiny as the United States alleges its products pose a security risk. Huawei has denied the allegations.

Last month, Huawei was slapped with a trade ban by the U.S. Commerce Department that threatens to significantly disrupt its supply chain, though it has since been given a temporary reprieve.

In March, The Wall Street Journal cited U.S. security officials as saying that undersea cables built by Huawei could be vulnerable to espionage by the Chinese state, which the company denied.

Huawei Marine, established in 2008 as a joint venture with Britain’s Global Marine, is mainly engaged in the construction of global undersea communications cables.

According to Huawei Technology’s annual report, the tech giant gained majority voting rights on the board of Huawei Marine in August 2018 with Global Marine retaining a 49% non-controlling interest.

Huawei Marine contributed revenue of 394 million yuan ($57.10 million) and logged a net profit of 115 million yuan in 2018, according to Huawei Technologies’ annual report.

https://www.reuters.com/article/us-huawei-tech-usa-cable/chinas-huawei-to-sell-undersea-cable-business-buyers-exchange-filing-shows-idUSKCN1T40BS?il=0

>>6658144

the cash for clunkers is the only thing that kept them and chrysler going. Daimler then sold chrysler to cerebrus captial in 2007 and it became an LLC which was 'sold' to FIat in 2009 as part of it's every few years of bankruptcy restructuring, off the books of course. It, chrysler, was basically over at the first bailout in 1979.

>>6658215

>>6658308

that burst in southeast new mexico look so real /sarc

>>6658343

that was the original thing, I agree. The secondary reason was the sustain them with the gov't assistance via the subsidy and cash flow aspect of it.. Played on the psyche of people to always keep up with the neighbors. I'll take my pristine 17 and 19 year old cars over those pieces of shit any day.

Huawei trade secrets lawsuit opens in Texas amid spying allegations

(Reuters) - Huawei Technologies, the Chinese telecommunications equipment supplier fighting a U.S. sales ban, kicks off a trade secrets lawsuit in the United States on Monday against a former employee who has sought to turn the case into a referendum on Huawei’s corporate behavior.

The trial, involving salacious allegations of corporate espionage, racketeering and a secret database of rivals’ technology, promises to keep Huawei in the spotlight amid a U.S. blacklisting and pressure on allies not to buy its networking gear over security concerns.

Jury selection begins on Monday in a federal court in Sherman, Texas, with the trial expected to last about three weeks. The judge in the case, Amos Mazzant, is also separately hearing Huawei’s bid to overturn the Trump administration’s ban on its sales to government agencies and contractors.

Huawei’s lawsuit against former employee Ronnie Huang and his startup, CNEX Labs Inc, claims an “an illegal pattern of racketeering” by the ex-manager to steal its technology and poach its staff, according to court documents. CNEX develops chips that speed up data storage on cloud computing networks.

Huang denies wrongdoing and has filed a countersuit, alleging Huawei is using U.S. courts to acquire his and others’ technology and quash rivals.

Huawei seeks “many tens of millions of dollars” in damages and rights to about 30 trade secrets and CNEX patents, according to a spokesman for the Chinese tech firm. Among Huawei’s claims, it says another Huawei employee downloaded some of its secrets before he joined CNEX.

“Huawei proved a springboard for (Huang) to succeed where he otherwise could not have,” the spokesman said. The case had nothing to do with tensions over the U.S. blacklist, he said. “This is not a U.S. versus China case,” said the spokesman.

Huang started CNEX in 2013 and has raised more than $100 million from backers including arms of Dell Technologies and Microsoft.

A Huawei official posed as a potential buyer and the company used ties to a Chinese university to gain access to CNEX designs, Huang’s countersuit claims. Among its accusations: Huawei rewarded staff for stealing rivals’ trade secrets and stores the pilfered technology in a secret database for its use.

“(Huawei) is a vast competitive-intelligence gathering operation, gathering the intellectual property and trade secrets of the world’s top technology companies,” Matthew Goss, CNEX general counsel, said in an interview.

Goss said Huawei’s lawsuit, which includes one of the first claims to be heard under the U.S. Defend Trade Secrets Act of 2016, was “weaponizing our courts against U.S. companies.”

https://www.reuters.com/article/us-huawei-tech-usa-cnex-trial/huawei-trade-secrets-lawsuit-opens-in-texas-amid-spying-allegations-idUSKCN1T40GA?il=0