3Com ends merger deal with Bain

By Lisa Kerner

Charlotte, N.C., April 30 - 3Com Corp. terminated its agreement and plan of merger with affiliates of Bain Capital Partners, LLC, according to a form 8-K filing with the Securities and Exchange Commission.

In September 2007, 3Com agreed to be acquired by affiliates of the Boston investment firm for $2.2 billion.

The company intends to seek payment of the $66 million termination fee from Bain, the filing said.

As previously reported, 3Com stockholders voted in March to accept the merger, fulfilling its commitments under the agreement and preserving 3Com's right to pursue a break-up fee.

Bain said on March 20 it was terminating the merger agreement because the U.S. Government's Committee on Foreign Investment in the United States planned to take action that would prohibit the transaction.

The companies' agreement called for 3Com shareholders to receive $5.30 in cash per share in a deal to take the company private. Affiliates of Huawei Technologies Co. Ltd. were to acquire a minority interest in 3Com and become a commercial and strategic partner of 3Com, according to a prior 3Com news release.

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

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