The proposed sale of3Comto Bain Capital Partners and
China's Huawei Technologies has drawn the attention of U.S.
lawmakers because it involves sensitive security
technology.
Legislation has been introduced in the U.S. House of
Representatives to block the acquisition of 3Com by Bain Capital
Partners and affiliates of Huawei Technologies of China.
Earlier in October, the two companies entered into a
definitive merger agreement that set a price of £1.1bn for
3Com.
"As business becomes ever more global, companies need to enhance
their technology infrastructure to compete more effectively in the
broader economy," said Jonathan Zhu, a Bain Capital managing
director based in Hong Kong. "3Com has a strong competitive
position, and we believe there are significant opportunities to
grow by acquiring customers and introducing new products."
