China's Huawei Technologies has postponed the auction of a major stake in its mobile devices unit, after receiving only two bids.

Of the five shortlisted bidders, only two - Bain Capital Partners and Silver Lake - submitted offers, both of which valued the company at less than the expected $4 billion. The sale, which would have been one of the biggest private equity deals in China, is being seen as a casualty of the credit crisis. But Huawei is one of the lucky ones, in that it can afford to postpone the sale.

"Huawei believes that given current global market conditions and prevailing economic uncertainty the interests of the company are best served by postponing the sale process," the company said in a statement, ading that it will continue to monitor market conditions and may resume the sale process later.

Huawei had hoped to raise capital to grow the business, particularly in North America, through the sale, which would have followed the partnership model the company has used in the past for other non-core businesses. It was selling half the unit, which makes mobile phone handsets, laptop data cards and routers for home use.

The company says it will continue to fund its expansion through cashflow. X

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