3Com shareholders overwhelmingly approved a merger offer on Friday that had been cancelled the day before.
The vote appeared to be designed to ensure 3Com could get a US$66 million breakup fee as compensation for pursuing a merger with Bain Capital Partners and Huawei Technologies that was proposed last year. The US$2.2 billion deal would have taken 3Com private and put 16.5 percent of the company's shares in the hands of Huawei, a large networking vendor partly owned by the Chinese government.
The deal was put on hold last month because of concerns expressed by the Committee on Foreign Investment in the US (CFIUS) after the partners voluntarily submitted it to the agency. 3Com, based in Marlborough, Massachusetts, is a relatively small player in networking equipment but makes some intrusion-detection products. US Representative Thaddeus McCotter, a Republican from Michigan, has said the US Department of Defense uses that security gear and having 3Com partly owned by a company linked to the Chinese government could endanger national security.
After the negative finding by CFIUS, the parties said they were trying to modify the deal so it could be approved. But on Thursday, Bain said it had given up because CFIUS planned to act to stop the deal.
3Com said Thursday that Bain's termination was invalid because the reasons Bain cited weren't grounds to end the deal. At the same time, 3Com said it would fulfill its obligations under the deal while pursuing the breakup fee. To get it, 3Com shareholders would have to approve the merger, the company said.
The shareholders approved the defunct merger by a vote of about 281.5 million to 7.5 million shares, with 4.2 million shares abstaining, according to a US Securities and Exchange Commission filing.
Read up on the latest ideas and technologies from companies that sell hardware, software and services. CRM your salespeople will love
Email Archiving Implementation: Five Costly Mistakes to Avoid
Controlling storage costs with Oracle database 11g
Achieving the impossible: Unlimited application scalability
Making the Business Case for IT Consolidation
Refresh your AUP: Top tips to ensure your acceptable use policy is fit for purpose
IT Service Management Needs and Adoption Trends: An Analysis of a Global Survey of IT Executives
Best Practice in Building an Integrated Information Management Strategy
Zones provide focussed content from Computerworld and leading technology partners.Discover how SOA can create smarter outcomes for your business.
Attend and learn:
- How SOA is helping leading companies to become more agile
- Where you should be applying SOA processes in your company
- The top SOA implementation mistakes to avoid
Click here for more information.
- +
Computerworld Live Podcast #97: The Future of Enterprise Networking 25/07/2008 09:45:36
This week CW Live chats with Mark Thompson, global sales and marketing manager for HP ProCurve, on the future of the enterprise networking. Mark discusses the trends we can expect to see in the near future and how the right infrastructure can ensure your enterprise network is secure. - +
Computerworld Live Podcast #96: Security at the Edge 11/06/2008 09:22:22
CW Live speaks with Amol Mitra, HP ProCurve Director of Marketing for Asia Pacific and Japan. Today's topic: how enterprises are starting to shift away from simply controlling security via server logins, firewalls and moving to more adaptive security frameworks. - +
Data Management Edition #10: Multi-Petascale Systems 02/05/2008 09:12:33
This week we look at sustainability and the development of multicore technologies to build multi-petascale systems. - +
IT Security Edition #11: How to poison the Storm botnet 01/05/2008 08:51:55
This week CW Live presents a case study on how to poison the notorious Storm botnet . Plus we take a look at Cisco's plans for Ironport. - +
IT Security Edition #10: Cyber-battles fought and won 24/04/2008 11:09:47
Vendors bow to end user pressure to improve product security, and we take a look at the latest concepts shaping the cyber-battlefield of the future.
Fortinet November Threatscape Report Shows Calm Before Holiday Storm 2008-12-05 16:00:00+11
Epicor® Cited as an Order Management Solutions Leader by Independent Research Firm 2008-12-05 15:52:00+11
F-Secure: Growth In Internet Crime Calls For Growth In Punishment 2008-12-05 13:00:00+11
International researchers gather in Sydney to preview the clever web 2008-12-05 09:48:00+11
Borderless corporate networks to shift focus to secure content management in Australia in 2009 2008-12-04 16:06:00+11
Enterprise Wireless WLAN Security
Learn more about the security challenges to be faced when defining and implementing security mechanisms within diverse wired and wireless network environments. Download this must-read guide to plan your wireless data protection strategy now.












