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US laws to block 3Com buy-out

John-Paul Kamath

The proposed sale of 3Com to 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."





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