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

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.

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TOPICS: Banking
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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.

Topic: Banking

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3 comments
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  • Send Huawei and Co back to China

    I'm completely happy. We should not allow any companies that are tied to / controlled by a foreign national government to purchase assets in the US.

    Maybe now that they won't own 3COM they can concentrate on beating to death some protesters in Tibet.
    croberts
  • RE: Ding dong: 3Com, Bain, Huawei deal is dead

    Matters of national security MUST NOT be placed in the hands of foreign nationals period!

    Especially countries whom have proven time and again that they cannot follow international policies/treaties.

    Namely, fraud/copyright infringement, basic human rights infringement, unbelievable lack of too many other basically essential things.

    China needs to speed too much time internally fixing all the things that are broken from with-in prior to afixing their eyes on things international!

    FWIW
    wbenton0
  • But if the Chinese authorities

    take steps to limit the risk that foreign - North American and European - companies will attain control over vital aspects of that economy, then everybody (in the ?Western? mainstream press) squeals like a stuck pig and starts talking about taking the case to the [b]WTO[/b]. Who was it that talked about noting the mote in one's neighbour's eye, while ignoring the beam in one's own ?...

    Henri
    mhenriday