Huawei, a Chinese telecom equipment maker, will wait for the result of a US Presidential review before selling one of their latest acquisitions. Huawei bought US server firm 3Leaf in May 2010; however the purchase raised security concerns.
An evaluation by the Committee of Foreign Investment in the USA said Huawei need to roll back the deal. The United States has previously blocked takeovers by Huawei citing concerns about the firm's links to the Chinese government.
Huawei's $2m (£3.1m) takeover of 3Leaf was not instantly disclosed to the United States authorities. Even so, when the buy found light, US authorities ordered a probe into the deal. The Committee of Foreign Investment in the United States (CFIUS) that is comprised of US governmental security, lawmaking and commerce representatives carried out the investigation.
It suggested late on Monday that Huawei voluntarily unwind the deal with 3Leaf. Huawei, though, asserted doing so would tarnish its reputation and brand. Consequently, the firm now wants US President Barack Obama to rule on the problem. The President does not need to stick to the recommendations of his advisors at CFIUS.
