curtain-falls-on-bainhuawei-bid-for-3com

Curtain falls on Bain-Huawei bid for 3Com

Bain and Huawei abandon their $2.2 billion bid for 3Com citing regulatory hurdles, putting an end to a deal that has been on the drawing board since September 2007.

Bain Capital and Huawei Technologies on Thursday withdrew their joint $2.2 billion bid for 3Com, causing 3ComÆs shares to plunge 11% to $1.98.

US private equity firm Bain Capital announced in September 2007 a deal to acquire Massachusetts-based networking company 3Com for $2.2 billion. The proposal envisaged Shenzhen-headquartered Huawei Technologies buying 16.5% of 3Com and Bain 83.5%. With its equity stake Huawei would get three board seats out of a total board of 11 and an option to increase its ownership stake to a maximum 21.5%. Bain and Huawei are advised by Citi and UBS.

But the deal was mired in controversy since it...

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