U.S. Congressional committee denies foreign merger
The Congressional Committee on Foreign Investment in the United States (CFIUS), denied approval of a proposed takeover of U.S.-owned technology manufacturer, 3Com Corporation, by Hong Kong-based Bain Capital Partners and P.R.C. owned Huawei Technologies Co. Ltd.
3Com announced that it will adjourn its Annual Shareholders’ Meeting on February 29th without taking a vote on the proposed takeover. 3Com did state that it will continue to hold discussions with Bain Capital and would reconvene the Shareholders’ Meeting on March 7th.
Bain and Huawei withdrew their bid to purchase 3Com for $2.2 billion earlier in the month after the foreign corporate buyout was not approved by the CFIUS.