Huawei failed in Moto unit takeover bid

Huawei Technologies Co. failed to reach agreements to buy two U.S. assets last month, even though the Chinese phone-equipment maker offered at least $100 million more in each case, according to two people with knowledge of the matter.

The sellers doubted Huawei's ability to win U.S. government approval to purchase software supplier 2Wire Inc. and Motorola Inc.'s wireless-equipment unit, the people said. They declined to be identified because Huawei's offers weren't public.

Huawei, founded by former Chinese army official Ren Zhengfei, failed in its latest attempts to expand in the U.S. where the Shenzhen, southern China-based company had encountered opposition based on national security concerns. In 2008, Huawei dropped a bid for computer-equipment maker 3Com Corp. after the U.S. began investigating whether a deal would give China access to anti-hacking technology used by the Defense Department.

"There is still some skepticism in the U.S. about any potential sale of technology assets to a Chinese company," said Wilson Chai, an analyst at Mirae Asset Securities in Hong Kong. "After years of trying in the U.S., Huawei hasn't made any significant breakthroughs in that market."