PALO ALTO (dpa-AFX) - Computer and printer maker Hewlett-Packard Co. (HPQ) is seeking a buyer for its corporate-networking business in China, the Wall Street Journal reported citing people familiar with the matter.
The company has begun sounding out private-equity firms in China that might be interested in the business, H3C Technologies Co. The process is in the early stages and Hewlett-Packard is expected to sell at least 51% of H3C. In a full sale, the business could be worth roughly $5 billion, the report said quoting the people.
Hewlett-Packard and other U.S. technology companies have come under pressure in China following revelations that the U.S. government collected data and other information at home and abroad in some cases using infrastructure belonging to American companies.
In order for a deal for H3C to win Chinese government approval, the buyer likely needs to be locally based, the report said.
The Journal said another Chinese technology company could buy H3C, though it is more likely to be sold to a private-equity group.
Earlier in October, Hewlett-Packard had announced that it planned to separate into two independent publicly traded companies, comprising Hewlett-Packard Enterprise, and HP Inc. Hewlett-Packard Enterprise would comprise HP's enterprise technology infrastructure, software and services businesses. Personal systems and printing would do business as HP Inc.
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