Filed under: Bain Capital, Private equity industry
3Com Corp. (NASDAQ: COMS) is seeing a severe snag in its acquisition process, and one that appears may actually kill the merger. This morning it has announced along with affiliates of Bain Capital Partners, LLC and Huawei Technologies that the parties have withdrawn their joint filing for a merger approval to the Committee on Foreign Investment in the United Says.
In the release, the company noted that it was disappointed that it was unable to reach a mitigation agreement with CIFIUS to secure the necessary merger approval. 3Com’s board of directors approved the merger back on September 28, 2007. While both parties remain committed to continuing discussions, it is fairly difficult to imagine that they’ll be able to overcome government oversight.
3Com is going to have to go back to basics and focus on its own business plan for the time being, regardless of continuing discussions. Read the rest of the backgrounder at 247WallSt.com.
Jon Ogg is a partner and editor of 247WallSt.com.
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