Unigroup’s Attempts to Sell French Unit Flounder After Low Bids

Tsinghua Unigroup Co.’s efforts to offload a French subsidiary and solidify its finances hit a snag after bids proved much lower than expected, dimming prospects for the Chinese semiconductor firm.

The process toward a sale that startedlast summer has stalled because of valuation concerns, according to people familiar with it, who asked not to be named as discussions are not public. Unigroup is looking to match or improve on the price it paid for smart-card components maker Linxens, based in Mantes-la-Jolie, with a target range of €2 billion to €3 billion.

Some private equity firms and other companies ...