Bain and Huawei drop 3Com bid
Private equity company and Huawei abandon $2.2 billion bid for 3Com over US regulators objections
Huawei and Bain Capital Partners have abandoned their proposed $2.2 billion takeover of network vendor 3Com, after US regulators said they would block the deal.
The Committee on Foreign Investment in the United States (CFIUS) threatened to block the deal, which would have given Huawei a minority stake in 3Com, on security grounds. The CFIUS expressed concern that the deal would give China access to technology, including network intrusion prevention products from 3Com's TippingPoint divisioPrivate equity company and Huawei abandon $2.2 billion takeover due to US regulator objections n, which are in use by the US government. US politicians had also questioned links between Huawei and the Chinese military.
In a statement, Edgar Masri, president and CEO of 3Com said: "We are very disappointed that we were unable to reach a mitigation agreement with CFIUS for this transaction. While we work closely with Bain Capital Partners and Huawei to construct alternatives that would address CFIUS' concerns, we will continue to execute our strategy to build a global networking leader."