Ding dong: 3Com, Bain, Huawei deal is dead

Summary:3Com on Wednesday officially declared its plan to be acquired by Bain and Huawei dead, saying that it was unable to allay U.S.

3Com on Wednesday officially declared its plan to be acquired by Bain and Huawei dead, saying that it was unable to allay U.S. national security concerns.

3Com, Bain and Huawei, a Chinese networking firm, had filed an application for the merger with Committee on Foreign Investment in the United States (CFIUS), but the deal raised national security concerns. The companies then withdrew the application, but couldn't revise the deal in a way that would satisfy security officials.

In a statement, 3Com said:

Since the withdrawal, 3Com, Bain Capital Partners and Huawei Technologies have been working to construct alternatives that would address CFIUS' concerns. To date, the parties have been unable to agree upon an alternative transaction that addresses CFIUS' concerns and is acceptable to 3Com's Board of Directors.

3Com will hold a shareholder vote on the merger plan on Friday, but it's just a formality.

Topics: Banking

About

Larry Dignan is Editor in Chief of ZDNet and SmartPlanet as well as Editorial Director of ZDNet's sister site TechRepublic. He was most recently Executive Editor of News and Blogs at ZDNet. Prior to that he was executive news editor at eWeek and news editor at Baseline. He also served as the East Coast news editor and finance editor at CN... Full Bio

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