February 20th, 2008
3Com, Bain, Huawei pull filing with U.S. foreign investment committee
The proposed 3Com takeover has hit another snag with the Committee on Foreign Investment in the United States (CFIUS).
In a statement Wednesday, 3Com said Bain Capital Partners and Huawei Technologies have withdrawn their filing with the CFIUS regarding their proposed merger. As background, the proposed takeover of 3Com has come under intense scrutiny for two reasons: First, 3Com owns security vendor TippingPoint. And second, 3Com is a key supplier to the Pentagon.
3Com appeared to be near a deal just a few weeks ago with plans to divest TippingPoint. Obviously that wasn’t enough.
All parties involved said they are “committed to continuing discussions” and added that they will “construct alternatives that would address CFIUS’ concerns.”
Larry Dignan is Editor in Chief of ZDNet and Editorial Director of ZDNet sister site TechRepublic. See his full profile and disclosure of his industry affiliations.
