The takeover of
3Com has been abandoned after the companies failed to secure approval from US foreign investment officials. Bain Capital announced that it would terminate the agreement to acquire 3Com, after talks with the company failed to secure a new agreement with conditions that could satisfy the Committee on Foreign Investment in the United States. 3Com said this was not grounds for ending the deal and it will pursue the break-up fee of USD 66 million from Bain and go ahead with a shareholder vote on the deal. The takeover of 3Com was agreed last September for USD 2.2 billion, but the minority stake of China''s Huawei Technologies in the acquiring consortium proved a problem with US government officials, who are a large customer for 3Com''s subsidiary Tipping Point.
Source:Telecompaper
