Bain and Huawei Resubmit Bid

Rich Tehrani : Communications and Technology Blog -
Rich Tehrani
| Communications and Technology Blog - Latest news in IP communications, telecom, VoIP, call center & CRM space

Bain and Huawei Resubmit Bid

Bain and Huawei are changing their bid for 3COM in a manner that does not change the financial elements of the deal but it minimizes Huawei's access to certain Ethernet technologies.

Last week, the parties pulled their application with the Committee on Foreign Investment in the U.S., or CFIUS, a 12-agency government panel amid concerns it would be rejected. A number of members of Congress had expressed concern about the security implications of allowing a Chinese-owned entity to exercise influence over the technology company.

If this transaction does go through, I believe it will increase the number of Chinese companies investing in US-based companies.

This may lead to more consolidation in the market but just as important, it is possible the Chinese will have the deep pockets needed to help grow a number of US-based technology companies at a time when capital may be more difficult to come by.

More from the AP and Wall Street Journal

Related Articles to 'Bain and Huawei Resubmit Bid'

Featured Events