Huawei Technologies is seeking first-round bids for its mobile-devices division by June 23, people familiar with the deal said Thursday.

The people said Huawei has been targeting private-equity firms, including European financial sponsors, as buyers for the unit. They said Huawei is open to selling a controlling stake in the unit, which produces handsets, data cards, DSL modem and home gateways, convergence terminals, and video products.

One person said Blackstone Group and Bain Capital of the U.S. are among the private-equity firms that have expressed interest in the asset.

"The sale of Huawei's mobile unit will hopefully help Huawei access the U.S. market, a strategy that hasn't been successful so far," one person said.

Huawei confirmed Thursday it is exploring opportunities for private-equity firms to invest in its mobile-devices division.

"This move is in line with Huawei's globalization efforts and will enhance the future development of this product group," Huawei said in statement to Dow Jones Newswires.

Huawei hopes it can make inroads into the U.S. market by offering low-cost cellphones to consumers, according to the people familiar with its thinking.

That view is based on the belief that high-end consumers will gravitate toward sophisticated tools like Research In Motion's BlackBerry or Apple's iPhone, while middle-market players will be squeezed.

For potential bidders, especially private-equity firms, the deal offers the rare opportunity to deploy a huge chunk of cash in a Chinese business and partner with one of China's most-competitive companies.

But Huawei isn't seeking strategic buyers, essentially rival firms, for the handset business, because they are unlikely to keep the brand intact, one person said.

Huawei, which has a strong network equipment business, has hired Morgan Stanley to arrange the sale of the mobile-devices operation.

Source:Dow Jones Newswires