Bain Capital and its minority Chinese partner, Huawei Technologies, have shelved their $2.2bn deal to acquire 3Com, a US computer networking company, saying the CFIUS, a key US committee which vets foreign investments in sensitive sectors, had told Bain it would not approve the purchase. Huawei was set to acquire 16.5% of 3Com and gain board seats, although it had agreed to forego management control in an effort to limit potential controversy over the deal. Bain’s plan to divest 3Com’s Tipping Point unit, which sells software to the government, was not enough to overcome political opposition.

This entry was posted by Gwen Robinson on Thursday, February 21st, 2008 at 5:51 and is filed under Capital markets, M&A, Private equity. Tagged with 3Com, bain, Huawei Technologies. Edit this entry.