3Com is still committed to its merger with Bain Capital Partners and Huawei despite a setback yesterday when the companies withdrew a filing to the Committee on Foreign Investment in the US (CFIUS) about the proposed merger.
The partners remaincommitted to continuing discussions, according to a statement released yesterday by the networking company.
"We are very disappointed that we were unable to reach a mitigation agreement wtih CFIUS for this transaction," says Edgar Masri, president and CEO of 3Con.
"While we work closely with Bain Capital Partners and Huawei to construct alternatives that would address CFIUS' concerns, we will continue to execute our strategy to build a global networking leader.
"We remain focused on serving our growing base of worldwise customers and providing them with innovating solutions that deliver long-term investment for their network infrastrucutre and offer them a lower total cost of ownership."
In September last year, 3Com's board of directors unanimously approved a definitive merger agreement under which the company would be acquired by affiliates of Bain Capital Partners for about $2,2-billion in cash. The parties voluntarily submitted to the proposed transaction, which included a minority ownership stake by Huawei Technologies, to CFIUS review.