RSS3Com Sold for $2.2 Billion Cash
By the Betanews Staff | Published September 28, 2007, 12:00 PM
3Com said Friday that it had reached a deal to be acquired by private equity firm Bain Capital and former partner Huawei Technology for $2.2 billion USD in cash. Huawei would gain a minority stake in the 3Com as part of the transaction. The former big name in networking has lost traction in recent years as competitor Cisco has rapidly gained market share.
Shareholders would receive $5.30 in cash per share of 3Com stock they own. The deal has already been approved by the company's board of directors, and it asked that shareholders approve the deal. ""We believe that this agreement better positions 3Com to establish itself as a global networking leader, which will benefit our employees, our customers and our partners," president and CEO Edgar Masri said in a statement.
Financial analysts are already drooling while waiting to see what the U.S. government thinks of this deal. Considering how 3Com already seems to have operated in China before the buyout, I don't honestly expect to see any negative repercussions due to the deal.
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|New and improved: Now made in China! (like everything else)
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|Id love to see what that cashers check looked like.
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|Cash? really? Heavily armed guards delivered the dollars right in-hand?
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|They probably mean cash, as in not stocks or something like that. I doubt they drove an armored truck up to the place and unloaded 2.2 billion dollars. :)
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|I figured as much, but still, there's enough destruction of language already, so why let it go unnoticed :)
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|lucky shareholders?
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|Yeah, if only I had owned one share I could get a meal at McDonald's.
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|Dollar menu, here I come.
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