Tags:3Com

3Com plans to hold a vote on its proposed takeover by Bain Capital at a shareholders meeting on 21 March. The sole purpose of the special meeting is to conduct the shareholder vote. 3Com does not intend to hold a question-and-answer session in conjunction with the meeting. The company intends to convene the shareholders meeting in order to fulfill its commitments under the merger agreement, which include holding a shareholders meeting, and to preserve its rights under the merger agreement, including its right to pursue a break-up fee under certain circumstances. While the company''s management supports the deal, 3Com and Bain have been unable to secure clearance from US foreign investment officials for the deal. As part of the merger transaction, affiliates of Huawei Technologies would also acquire a minority interest in 3Com and become a commercial and strategic partner of the company. To date, the parties have been unable to agree upon an alternative transaction that addresses US government concerns and is acceptable to 3Com''s board. "While we remain committed to exploring alternatives that would enable us to complete the merger transaction contemplated by our existing merger agreement, we also remain confident in our long-term prospects," said 3Com CEO Edgar Masri in a statement.



Source:Telecompaper