Oct. 8 (Bloomberg) -- Huawei Technologies Co., China's biggest phone-equipment maker, shelved plans to sell a stake in its mobile-phone unit to buyout firms because of global financial turmoil.

Privately held 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 Shenzhen, southern China-based business said in an e-mailed statement today.

Huawei joins Ping An Insurance (Group) Co., China's second- largest insurer, in scrapping a planned transaction because of the global credit crisis. The U.S. Federal Reserve, European Central Bank and other central banks today lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis.

Private-equity investors Bain Capital LLC and Silver Lake Partners were the leading bidders for a controlling stake in the Huawei unit, people familiar with the sale said last month. In June, people familiar with the talks said the handset unit's value was about $4 billlion.

Alex Stanton, a New York-based spokesman for Bain, and Matthew Benson, a San Francisco-based spokesman for Silver Lake Partners, didn't immediately respond to e-mails sent before office hours.

Huawei in June said it hired Morgan Stanley to help in ``exploring opportunities'' for private equity firms to invest in its unit that also makes wireless internet cards and modems.

Nick Footitt, a Hong Kong-based spokesman at Morgan Stanley, declined to comment

Kohlberg Kravis Roberts & Co., Carlyle Group, Blackstone Group LP and TPC Inc. either didn't express interest after Huawei sent them invitations or didn't get past the first round, people familiar with the situation said last month.

To contact the reporter on this story: John Liu in Shanghai at jliu42@bloomberg.net

Last Updated: October 8, 2008 07:21 EDT