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August 21, 2008 4:51:45 PM CDT

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Bain, Chinese Firm Buy 3Com

Posted Sep 30, 07 5:14 PM CDT in Technology,  Business 

(Newser) – Chinese company Huawei Technologies Co. will help private equity firm Bain Capital buy 3Com Corp., a flailing US telecommunications company, by picking up almost 20% of the tab. Recently Chinese businesses have bought strategic stakes in US companies rather than full buyouts to skirt political scrutiny, which can lead to a deal collapse, reports the WS Journal.

Huawei is the largest telecommunications company in China, prompting a thorough vetting by Washington for security risks to American networks. Though shares in 3Com traded high in the 90’s, one expert said it's in "one of the industry's longest death spirals,"  due to bad purchases and effects of the post-boom Internet bust.

Source Wall Street Journal

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A worker assembles parts in the manufacturing center of Hua Wei Technologies Co. Ltd. in Shenzhen, China, March 28, 2005. Huawei Technologies is a private high-tech enterprise in China specializing in   (KRT Photos)
3Com Corp. offices are seen, Friday, Sept. 28, 2007 in Marlborough, Mass. 3Com Corp., a makes of networking hardware and software, will be sold to affiliates of private equity firm Bain Capital Partners...   (Associated Press)
An employee shows the 3G handset Huawei U626, which has the video conferencing function, in the exhibition hall of Hua Wei Technologies Co. Ltd. in Shenzhen, China, March 28 2005. Huawei Technologies   (KRT Photos)
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China  • business  • technology  • telecommunications  • Bain Capital  • 3Com  • Huawei


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