Following up on some news from last week, Congress' Committee on Foreign Investment in the United States reportedly is set to extend its review of the proposed acquisition of 3Com by Bain Capital and Huawei Technologies. The $2.2 billion deal planned by the private equity firm and the Chinese vendor would give Bain 83.5% ownership of 3Com and Huawei 16.5%, with an option for Huawei to grow its piece to 21%. Bain has noted control of the company would remain in the hands of U.S. based management, but Congress wants more details about who or what individuals or groups actually constitute the ownership of "privately-owned" Huawei.
- read this story in The Washington Post
- Bain and Huawei announced the 3Com buyout last September