BOSTON (Thomson Financial) - Shares of 3Com Corp. surged Friday after the
Wall Street Journal reported that Bain Capital LLC and Huawei Co. will will
resubmit their bid for the Marlborough, Mass.-based networking equipment maker.
The newspaper, citing people familiar with the matter, said Bain Capital and
Huawei Technologies Co. plan to to resubmit an application seeking U.S. approval
for their planned $2.2 billion buyout of 3Com.
The new transaction would leave Huawei with 16.5% of the company and Bain
holding the rest, according to the report. The purchase price is expected to
remain the same.
Last week, Bain Capital and Huawei withdrew their application with the
Committee on Foreign Investment in the U.S. because of concerns over the
participation of China-based Huawei.
Late Thursday, 3Com said it was still talking with the two buyers about
alternatives that could address U.S. security concerns over the Chinese
company's role in the deal. The company said it had postponed its Friday
shareholder vote on the buyout and said it would convene the meeting and
immediately adjourn without a vote.
3Com rescheduled the shareholders meeting for March 7.
Shares rose nearly 21% at $3.51 on volume of 6.8 million shares. The issue's
30-day average volume is about 7.5 million
Casey Logan
cl/pc
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