Reports today state that Huawei has shortlisted five private equity firms to bid for a US$2 billion stake in the company’s mobile handset unit. Reuters identifies AEA Investors, Bain Capital, Goldman Sachs, Kohlberg Kravis Roberts & Co. and Silver Lake Partners as being potential investors. The Wall Street Journal said earlier the mobile devices unit is valued at US$4 billion based on the offers. The five companies are offering to take an approximate 50 percent stake.

The developments follow previous reports in May that the Chinese telecoms equipment manufacturer is planning to sell off the stake in its mobile handset business to a foreign investor in an effort to gain a foothold in the North American market. The deal would mark one of the largest-ever foreign investments in a Chinese firm. Huawei’s handset business is smaller than its core network-equipment business, but the company hinted earlier this year that it plans to more than double its volume of handset shipments in 2008. The South China Morning Post reported in May that Huawei has set itself a target of 50 million units in 2008 (up from 20 million last year), a benchmark that could see it draw level with ZTE, China’s largest handset vendor.