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Print Edition StoriesFriday, August 1, 2008
3Com sues Bain over failed buyout
By Mass High Tech Staff
Marlborough-based 3Com Corp., a maker of networking hardware and software, is suing Bain Capital Partners LLC for a $66 million termination fee, according to a 3Com filing with the U.S. Securities and Exchange Commission.
The Boston-based private equity firm pulled out of a buyout deal in March with Huawei Technologies Co. Ltd., the Chinese partner of 3Com, to buy 3Com for $2.2 billion. The deal would have resulted in Huawei taking a minority stake in the company, with Bain Capital holding the bulk of the ownership through its Diamond II Holdings entity, with shareholders receiving $5.30 per share.
The lawsuit was filed by 3Com against Diamond II Holdings Inc. in Delaware Chancery Court.
As of July 8, Bain was one of a handful of private equity firms vying for a stake in the wireless devices unit of Chinese firm Huawei Technologies Co. Ltd., which is valued at about $4 billion.
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