3Com, Bain and Huawei still talking buyout
- 03 March, 2008 08:03
3Com immediately adjourned a shareholder meeting last week and reconvene it this week to allow time for merger discussions to continue with Bain Capital Partners and China's Huawei Technologies.
All three companies withdrew a filing before the Committee on Foreign Investment in the US (CFIUS) last week, amid reports that CFIUS was concerned over national security issues in the proposed US$2.2 billion deal.
A spokeswoman confirmed that the meeting was postponed until March 7 after 3Com issued a statement that the company is continuing to work with Bain to "construct alternatives" to the concerns raised by CFIUS. The committee has raised national security questions regarding the investment by Huawei, which is based on Shenzhen, China, and has close ties to the Chinese government.
The Wall Street Journal reported, citing unnamed sources, that the companies plan to resubmit an application for US approval of the deal within the next several weeks.