The global financial crisis has thrown the fate of two multi-billion dollar Asian mergers and acquisition deals in doubt, amid signs that the vendors may have to accept lower valuations to keep the sales on track. Huawei and PCCW are both seeking to divest substantial stakes in important business units but the financial turmoil is forcing potential bidders to recast their offers.

Huawei, the Chinese telecommunications equipment maker, is in the final throes of a process begun this year to sell up to a majority stake in its mobile handset division; a deal expected to value the unit at $3.5bn.