China Tries To Buy 3COM Again Communication Military Company.

02-29-2008, 09:07 AM

WASHINGTON (Dow Jones) -- Shares of 3Com Corp. rose as much as 25% in premarket trading Friday, gaining on news that the networker continues to work on securing the sale of the company to a U.S. investment firm and its Chinese partner.

Earlier this month, 3Com (COMS) and the two prospective buyers withdrew an application with a federal oversight panel that investigates mergers involving foreign companies. Concerns raised by the panel over Chinese participation have threatened the $2.2 billion deal.

Late Thursday, 3Com said it continues to negotiate with the two buyers, Bain Capital Partners LLC and Huawei Technologies Co., on ways to address concerns about national security. The three companies could soon refile a new application with the Committee on Foreign Investment in the United States, an arm of the Treasury Department.

As a result, Marlborough, Mass.-based 3Com said investors would not vote on the proposed sale at a shareholders meeting previously slated for Friday. The meeting would be convened and immediately adjourned without a vote.
The shareholders meeting has been rescheduled for March 7, 3Com said.

Shares of 3Com, which closed Thursday at $2.91, last traded at $3.52 ahead of the bell. The stock fell 23% on Feb. 20, when the company withdrew its initial application with CFIUS.
While the negotiations are ongoing, 3Com cautioned: "There can be no assurance that these discussions will not adversely affect the terms of the pending merger transaction, including valuation, or that these discussions will result in an alternative that adequately addresses CFIUS' concerns."

Under the renewed negotiations, the three companies were looking for ways to minimize the role of Huawei in parts of 3Com's business that serve the federal government.

Although it's a relatively small player in the networking market, 3Com sells anti-hacking and other network-security services to the Defense Department.

The U.S. has been particularly sensitive about foreign ownership of communications assets, especially in light of repeated attempts to hack the nation's defense systems. Chinese-based hackers are viewed as a major concern.

The little-known CFIUS, part of the Treasury Department, monitors the effects of cross-national mergers and can block deals if it believes the nation's security would be placed at risk. Only rarely has the agency taken that step, however.

Huawei is the largest networker in China and a company with links to the mainland's communist government. Huawei is run by a former mid-ranking officer in the Chinese army whose firm has raised the ire of the U.S. government and Western rivals such as Cisco Systems Inc.

Under the prior agreement Huawei would have gained a 16% stake in 3Com, with Bain Capital Partners owning a majority stake. Boston-based Bain was founded by former Republican presidential candidate Mitt Romney, though he's no longer involved with the firm.
Yet some politicians in both parties have raised public opposition to the deal and the pending presidential election looms as another potential obstacle. Some lawmakers believe Huawei has been working with its government to undermine Western interests.

Link:
http://money.cnn.com/news/newsfeeds/...LINE000693.htm

classicman · 02-29-2008, 01:36 PM

not good.

Flint · 02-29-2008, 02:51 PM

Quote:

Originally Posted by classicman

not good.

And JoannBlue usually posts such good news...this is out of character...

lookout123 · 02-29-2008, 02:58 PM

No animals were harmed in the creation of this thread. /announcer guy/

Shawnee123 · 02-29-2008, 03:00 PM

This just in: US Lifts Ban On Shooting Chinese

classicman · 02-29-2008, 03:30 PM

They aren't endangered anymore???

lookout123 · 02-29-2008, 03:34 PM

Nope. shoot away, lad, shoot away.

TheMercenary · 02-29-2008, 03:50 PM

They taste like Chinese Chicken or Oriental Sausage?

02-29-2008, 09:07 AM	#1
JoannBlue Guest Posts: n/a	China Tries To Buy 3COM Again Communication Military Company. WASHINGTON (Dow Jones) -- Shares of 3Com Corp. rose as much as 25% in premarket trading Friday, gaining on news that the networker continues to work on securing the sale of the company to a U.S. investment firm and its Chinese partner. Earlier this month, 3Com (COMS) and the two prospective buyers withdrew an application with a federal oversight panel that investigates mergers involving foreign companies. Concerns raised by the panel over Chinese participation have threatened the $2.2 billion deal. Late Thursday, 3Com said it continues to negotiate with the two buyers, Bain Capital Partners LLC and Huawei Technologies Co., on ways to address concerns about national security. The three companies could soon refile a new application with the Committee on Foreign Investment in the United States, an arm of the Treasury Department. As a result, Marlborough, Mass.-based 3Com said investors would not vote on the proposed sale at a shareholders meeting previously slated for Friday. The meeting would be convened and immediately adjourned without a vote. The shareholders meeting has been rescheduled for March 7, 3Com said. Shares of 3Com, which closed Thursday at $2.91, last traded at $3.52 ahead of the bell. The stock fell 23% on Feb. 20, when the company withdrew its initial application with CFIUS. While the negotiations are ongoing, 3Com cautioned: "There can be no assurance that these discussions will not adversely affect the terms of the pending merger transaction, including valuation, or that these discussions will result in an alternative that adequately addresses CFIUS' concerns." Under the renewed negotiations, the three companies were looking for ways to minimize the role of Huawei in parts of 3Com's business that serve the federal government. Although it's a relatively small player in the networking market, 3Com sells anti-hacking and other network-security services to the Defense Department. The U.S. has been particularly sensitive about foreign ownership of communications assets, especially in light of repeated attempts to hack the nation's defense systems. Chinese-based hackers are viewed as a major concern. The little-known CFIUS, part of the Treasury Department, monitors the effects of cross-national mergers and can block deals if it believes the nation's security would be placed at risk. Only rarely has the agency taken that step, however. Huawei is the largest networker in China and a company with links to the mainland's communist government. Huawei is run by a former mid-ranking officer in the Chinese army whose firm has raised the ire of the U.S. government and Western rivals such as Cisco Systems Inc. Under the prior agreement Huawei would have gained a 16% stake in 3Com, with Bain Capital Partners owning a majority stake. Boston-based Bain was founded by former Republican presidential candidate Mitt Romney, though he's no longer involved with the firm. Yet some politicians in both parties have raised public opposition to the deal and the pending presidential election looms as another potential obstacle. Some lawmakers believe Huawei has been working with its government to undermine Western interests. Link: http://money.cnn.com/news/newsfeeds/...LINE000693.htm

02-29-2008, 01:36 PM	#2
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	not good. __________________ "like strapping a pillow on a bull in a china shop" Bullitt

02-29-2008, 02:58 PM	#4
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	No animals were harmed in the creation of this thread. /announcer guy/ __________________ Getting knocked down is no sin, it's not getting back up that's the sin

02-29-2008, 03:00 PM	#5
Shawnee123 Why, you're a regular Alfred E Einstein, ain't ya? Join Date: Jun 2006 Posts: 21,206	This just in: US Lifts Ban On Shooting Chinese __________________ A word to the wise ain't necessary - it's the stupid ones who need the advice. --Bill Cosby

02-29-2008, 03:30 PM	#6
classicman barely disguised asshole, keeper of all that is holy. Join Date: Nov 2007 Posts: 23,401	They aren't endangered anymore??? __________________ "like strapping a pillow on a bull in a china shop" Bullitt

02-29-2008, 03:34 PM	#7
lookout123 changed his status to single Join Date: Apr 2004 Location: Right behind you. No, the other side. Posts: 10,308	Nope. shoot away, lad, shoot away. __________________ Getting knocked down is no sin, it's not getting back up that's the sin

02-29-2008, 03:50 PM	#8
TheMercenary “Hypocrisy: prejudice with a halo” Join Date: Mar 2007 Location: Savannah, Georgia Posts: 21,393	They taste like Chinese Chicken or Oriental Sausage? __________________ Anyone but the this most fuked up President in History in 2012!

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)