Bain Capital and Huawei Technologies on Thursday withdrew their joint $2.2 billion bid for 3Com, causing 3ComÆs shares to plunge 11% to $1.98.
US private equity firm Bain Capital announced in September 2007 a deal to acquire Massachusetts-based networking company 3Com for $2.2 billion. The proposal envisaged Shenzhen-headquartered Huawei Technologies buying 16.5% of 3Com and Bain 83.5%. With its equity stake Huawei would get three board seats out of a total board of 11 and an option to increase its ownership stake to a maximum 21.5%. Bain and Huawei are advised by Citi and UBS.
But the deal was mired in controversy since it...
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