Huawei says it halts sale of handset unit stake

HONG KONG, Oct 9  - Huawei Technologies [HWT.UL], China's largest mobile equipment maker, said late on Wednesday it had halted the sale of a stake in its mobile handset business, citing market conditions.

The business was said to be worth more than $3.5 billion.

"Given the current global market condition and prevailing economic uncertainty, the interests of the company are best served by postponing the sale process," the company said in a statement.

After several private equity firms showed interest in the business when the auction started, only two -- Bain Capital and Silver Lake -- submitted formal offers for the stake, sources involved with the matter told Reuters last week.

Shenzhen-based Huawei hired Morgan Stanley <MS.N> in May to sell a majority stake in the unit, which is made up of five business groups, among them mobile handsets, data cards for laptops, and routers for home use.