China rivals vie for state backing to buy HP unit

RARE TUSSLE: Two Chinese state-backed firms are wrangling over which has Beijing's backing to buy a controlling stake in Hewlett-Packard Co's data-networking business in China.

BEIJING: The bidding for a controlling stake in Hewlett-Packard Co's data-networking business in China, worth more than US$2bil (RM7.09bil), has thrown up a rare tussle between two Chinese state-backed firms who are wrangling over which has Beijing's backing. 

The spat involving China Huaxin Post and Telecommunication Economy Development Centre and Tsinghua Unigroup could prolong the sale negotiations, and highlights the complexity of cross-border investment policies that China has sought to streamline.