March 19, 2008
3Com, Bain Unable To Agree On Merger Terms
By Matthew L. Brown
Marlborough's 3Com Corp. said it plans to hold its shareholder meeting Friday even though the deal for Bain Capital Partners and Huawei Technologies to acquire the company are all but dead.
The company said it intends to hold the meeting at its 350 Campus Drive headquarters only to fulfull its obligation under the merger agreement to hold such a meeting. Regardless of whether 3Com's shareholders approve the merger Friday, the deal is unlikely to happen. Under terms of the deal, 3Com would have sold for about $2 billion and would've become a private company owned by Bain. Affiliates of Huawei would have made a minority investment in 3Com.
However, the Committee on Foreign Investment in the United States raised national security concerns about the merger that the companies have not been able to overcome. "The companies have been unable to agree upon an alternative transaction," according to 3Com.
The company said it intends to hold the meeting at its 350 Campus Drive headquarters only to fulfull its obligation under the merger agreement to hold such a meeting. Regardless of whether 3Com's shareholders approve the merger Friday, the deal is unlikely to happen. Under terms of the deal, 3Com would have sold for about $2 billion and would've become a private company owned by Bain. Affiliates of Huawei would have made a minority investment in 3Com.
However, the Committee on Foreign Investment in the United States raised national security concerns about the merger that the companies have not been able to overcome. "The companies have been unable to agree upon an alternative transaction," according to 3Com.
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