3Com to adjourn annual meeting as merger with Bain Capital stalls on foreign investment issues

By Lisa Kerner

Charlotte, N.C., Feb. 29 - 3Com Corp. said it will convene and immediately adjourn its annual meeting of shareholders, which was scheduled to take place on Feb. 29.

No vote will be taken on the company's pending merger transaction with affiliates of Bain Capital Partners, 3Com said in a news release.

The meeting will be reconvened on March 7 at 8 a.m. ET.

Adjourning the meeting will give Bain and 3Com additional time to address concerns raised by the Committee on Foreign Investment in the United States.

3Com and Bain, along with Huawei Technologies Co. Ltd., withdrew their joint filing to the committee after failing to reach a mitigation agreement in connection with the companies' proposed merger, it was previously reported.

In September, 3Com agreed to be acquired by affiliates of Bain Capital for $5.30 cash per share, or $2.2 billion. Affiliates of Huawei Technologies were to acquire a minority interest in the company and become a commercial and strategic partner of 3Com.

Bain, a Boston investment firm, received financing commitments from Citigroup Global Markets Asia Ltd., UBS AG, the Hongkong and Shanghai Banking Corp. Ltd., ABN Amro Bank NV and Bank of China (Hong Kong) Ltd.

3Com, located in Marlborough, Mass., provides secure, converged voice and data networking solutions.

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