3Com still plans to vote tomorrow on a standing $2.2 billion offer from Bain Capital and Huawei Technologies to acquire the firm, even though 3Com previously withdrew the deal from consideration by the Committee on Foreign Investment in the United States. The company was planning to work with the prospective buyers to revise the deal and re-submit it for federal consideration, but that has not happened yet. Still, 3Com officials continue to recommend the original offer to shareholders and say they are fulfilling their responsibility by pushing the offer to a company vote.
The federal committee is said to be concerned that a portion of 3Com's network security business that has dealings with U.S. military should not be put under partial ownership by a company with ties to the Chinese government. The initial acquisition would give Huawei a 16.5 percent stake in 3Com.
For more:
- check this coverage [1] at The Wall Street Journal
Related article:
- Huawei [2] can raise its stake in 3Com to 21.5% under the deal terms
Links:
[1] http://online.wsj.com/article/SB120593699082948513.html?mod=telecommunications_primary_hs
[2] http://www.fiercetelecom.com/story/huawei-can-boost-3com-stake/2007-10-15