3Com shares jump; Bain, Huawei to resubmit bid for 3Com, report says
Friday , February 29, 2008 11:25ET
By Staff Reporter
BOSTON, Feb 29, 2008 (Thomson Financial via COMTEX) -- 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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