3Com investor ups stake, no further talks on 'alternatives'

New York, July 2 - 3Com Corp. investors led by Citadel LP further increased their holdings in the company but said that no further discussions on its strategy have taken place.

Citadel now owns 39,085,937 shares for a 9.8% stake, accumulated at a cost of $160 million, according to an SC 13D/A filing with the Securities and Exchange Commission.

Citadel previously reported holdings of 33,492,877 shares, or 8.4%, on May 7.

On May 21, Citadel met with senior officers and discussing the investor's views of its strategy, including its relationship with Huawei, its TippingPoint business and its SCN business.

Citadel reported to the SEC said it has tried to schedule further discussions "regarding alternatives to increase shareholder value, but no further substantive discussions have been held as of the date of this filing."

In an earlier letter to the company, Citadel said: "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."

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

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