Posts tagged Blackstone at BloggingBuyouts::
difficult to get deals done as well as work off the huge buyout debt backlog. 54 billion Dubai eco-deal, maybe closer than farther away. M&A Update: BCE Inc.
http://www.bloggingbuyouts.com/tag/blackstone/page/2HOME |
What will it to take for the U.S government to consent to the takeover of networking vendor 3Com?
That's what private-equity firm Bain Capital is trying to find out. The issue and its ultimate resolution have broad implications for foreign investment in U.S.-based technology vendors.
Bain is attempting to acquire 3Com in a $2.2 billion deal, which was first announced in September.
In early January it was revealed that the Department of Treasury's Committee on Foreign Investment in the United States (CFIUS) was reviewing the deal and had concerns about foreign ownership.
As part of the buyout deal, Chinese networking vendor Huawei Technology would take a minority interest in 3Com.
Apparently Bain is in discussions with CFIUS about concessions to make the deal happen. Reuters reported that Bain has offered to divest 3Com of its TippingPoint security unit to make the deal go through.
A source confirmed to InternetNews.com 24/7 Wall St.: Technology Companies::
for EDS would likely have to come in the form of a friendly buyout. Today after the close of trading well get to see earnings out of Sun Microsystems Inc.
http://www.247wallst.com/technology_companies/index.htmlHOME |
that the Reuters report was "directionally accurate" and that the divestiture of TippingPoint is on the table.
The buyout deal was expected to close by the end of the first quarter of 2008.
On Feb. 29, 3Com shareholders are scheduled to vote on the matter. Before any deal could be completed, however, CFIUS must sign off.
Bain notes that it has utmost respect for the mission of CFIUS to promote international investment while protecting our national security.
"We continue to cooperate with CFIUS in an active and constructive dialogue with these dual objectives in mind," Bain stated. "As part of that dialogue, we have put on the table robust mitigation proposals that offer significant structural and security safeguards to American national security interests."
The CFIUS deal could set a precedent for foreign investment in U.S. technology vendors at a time when global expansion is key to growth.
Bain declined comment beyond this statement: "At this sensitive time for the U.S. and global economies, we think it is critical that responsible cross-border investments like the 3Com transaction be permitted to move forward on sound economic terms, while fully protecting American national security."
 HP Rides to the Rescue
 Will $48.5B Deal For Bell Canada Pass Muster?
| 
HOME