China's Huawei suffers setback as US IT deal stalls

0 Comments | AFP, February, 2008

NEW YORK (AFP) — The global Chinese telecommunications company Huawei suffered a setback Wednesday as US technology group 3Com and private equity firm Bain Capital said their proposed merger plan had hit a hurdle.

The two American firms said in a joint statement that they "remain committed" to Bain's proposed 2.2-billion-dollar takeover of 3Com, but announced they had withdrawn a takeover filing with the powerful Committee on Foreign Investment in the United States (CFIUS).

The companies withdrew the takeover application with CFIUS after 3Com said last year that the deal would not threaten US national security.

Huawei, which is based in the Shenzhen region of China, stands to gain a hefty 21.5 percent stake in 3Com if Bain's takeover of the technology firm...