Buyout Of Marlborough's 3Com Draws Review
Bain Capital Partners said it will submit for a national security review its proposed $2.2 billion buyout of networking equipment maker 3Com Corp.
Government scrutiny was anticipated ever since the acquisition was announced Sept. 28 because of a minority stake in the deal held by Chinese telecommunications company Huawei Technologies, which has close ties to China's government.
Companies usually submit deals to the federal Committee on Foreign Investment in the United States as a defensive measure. The government can unwind deals that weren't reviewed if federal agencies later determine they pose a threat to national security.
In a statement, Bain Capital, a Boston-based private equity firm, said "we believe the U.S. government review in this matter will conclude that the company will be firmly controlled by an American firm, have only a small minority foreign shareholders, and the deal presents no risks to national security."
The pending transaction, which Wall Street is betting will close in the first quarter, requires both shareholder and regulatory approval. (AP)
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