3Com's largest investor offers to help company build shareholder value

By Lisa Kerner

Charlotte, N.C., May 7 - 3Com Corp. investors led by Citadel LP requested a meeting with the company's management and board of directors to discuss 3Com's corporate strategy and options to create shareholder value, according to a letter included as part of a schedule 13D filing with the Securities and Exchange Commission.

Citadel Ltd. is the portfolio manager for 3Com's largest shareholder, Citadel Equity Fund Ltd., which beneficially owns 33,492,877 shares, or 8.4%, of the company's outstanding stock.

"As you are aware, 3Com's share price has underperformed both relative and absolute measures of shareholder return for many years. More recently, the market's reaction to 3Com's purchase of Huawei Technologies' 49% ownership in H3C has resulted in a nearly 20% decline in share price," the investor's letter stated.

On April 16, Citadel expressed support for the management team to chief executive officer Edgar Masri and investor relations head John Vincenzo.

3Com is a network solutions company located in Marlborough, Mass.

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