3Com to be acquired by Bain, Huawei for $ 2 bln-WSJ

Subscribe to Oneindia News

NEW YORK, Sept 28 (Reuters) Communications equipment maker 3Com Corp has struck a deal to be bought by China's Huawei Technologies and private equity firm Bain Capital for more than NEW YORK, Sept 28 (Reuters) Communications equipment maker 3Com Corp has struck a deal to be bought by China's Huawei Technologies and private equity firm Bain Capital for more than $2 billion, The Wall Street Journal reported on Friday.

The offer values 3Com at more than $5 per share, the Journal said, citing a person familiar with the matter.

3Com shares rose 32.6 percent to $4.88 in premarket trade.

The shares are halted on the Nasdaq pending news.

In March, Marlborough, Massachusetts-based 3Com bought Huawei Technologies' 49 percent stake in H3C, a joint venture between the companies, for $882 million. That deal gave 3Com full ownership of H3C.

Bain Capital is one of world's largest private equity firms. Huawei is China's largest communications equipment maker.

A deal would be a positive sign for private equity firms, whose deal-making activity has been sharply curtailed by the credit crunch.

By teaming up with a corporate partner, Bain will be less reliant on banks for money to fund the deal.

A representative of 3Com was not immediately available to comment on the newspaper report. A Bain spokesman did not immediately return a call seeking comment.

REUTERS DKS DB1852 billion, The Wall Street Journal reported on Friday.

The offer values 3Com at more than per share, the Journal said, citing a person familiar with the matter.

3Com shares rose 32.6 percent to .88 in premarket trade.

The shares are halted on the Nasdaq pending news.

In March, Marlborough, Massachusetts-based 3Com bought Huawei Technologies' 49 percent stake in H3C, a joint venture between the companies, for 2 million. That deal gave 3Com full ownership of H3C.

Bain Capital is one of world's largest private equity firms. Huawei is China's largest communications equipment maker.

A deal would be a positive sign for private equity firms, whose deal-making activity has been sharply curtailed by the credit crunch.

By teaming up with a corporate partner, Bain will be less reliant on banks for money to fund the deal.

A representative of 3Com was not immediately available to comment on the newspaper report. A Bain spokesman did not immediately return a call seeking comment.

REUTERS DKS DB1852

Please Wait while comments are loading...