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Huawei & Bain Bail on $2.2B 3Com Deal

Bain Capital Partners has pulled the plug on its $2.2 billion acquisition of 3Com in the face of stiff U.S. government opposition.

Yesterday an affiliate of Bain told 3Com that it was taking the action because the U.S. government's Committee on Foreign Investment in the United States (CFIUS) said it intended to take action to stop the transaction.

Bain hinted that 3Com also played a part in the deal's collapse.

"Bain Capital made several alternative proposals to 3Com that we believe could have satisfied the concerns raised by CFIUS," the Boston-based investment firm said in a statement yesterday. "We regret that we were unable to agree on an alternative transaction."

3Com, which had announced plans earlier this week for a shareholder meeting to vote on the merger agreement, was unavailable for comment last night.

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