Feeds

Money men rubbish spooky fears over 3Com deal

National security concerns unfounded

High performance access to file storage

Bain Capital Partners, the private equity shop that sounded the death knell for 3Com this week, has moved to kneecap talk of a national security block by the US.

Part of the takeover is being funded by Chinese firm Huawei, prompting collywobbles in Washington DC that Beijing might get its pinko mitts on some tasty networking vulnerabilities.

Congressman Thaddeus McCotter (R, MI, circa 1862), chair of the Republican Policy Committee, said the deal represents a "stealth assault on America's national security".

Bain's Hong Kong chief Jonathan Zhu hit back in the Financial Times today. He said: "This deal involves a US private equity firm buying a US-listed company. Huawei would be a minority investor with a 16.5 per cent stake.

"Huawei previously owned 51 per cent of H3C when it was a joint venture with 3Com, and there was no issue then."

Bain has agreed to submit the deal for national security review, and is bullish about its outcome.

Huawei is a private company run by reclusive ex-military man Ren Zhengfei, and is often accused of lacking transparency and PLA links. In 2003, Cisco accused it of intellectual property theft, adding to its controversial reputation. The case was dropped after 3Com got involved with Huawei.

As the FT notes, none of the issues circling Huawei seem to have stymied its rise. Its revenues this year are expected to hit $15bn, up from $11bn a year ago. ®

High performance access to file storage

More from The Register

next story
Seagate brings out 6TB HDD, did not need NO STEENKIN' SHINGLES
Or helium filling either, according to reports
European Court of Justice rips up Data Retention Directive
Rules 'interfering' measure to be 'invalid'
Dropbox defends fantastically badly timed Condoleezza Rice appointment
'Nothing is going to change with Dr. Rice's appointment,' file sharer promises
Cisco reps flog Whiptail's Invicta arrays against EMC and Pure
Storage reseller report reveals who's selling what
Bored with trading oil and gold? Why not flog some CLOUD servers?
Chicago Mercantile Exchange plans cloud spot exchange
Just what could be inside Dropbox's new 'Home For Life'?
Biz apps, messaging, photos, email, more storage – sorry, did you think there would be cake?
IT bods: How long does it take YOU to train up on new tech?
I'll leave my arrays to do the hard work, if you don't mind
prev story

Whitepapers

Mainstay ROI - Does application security pay?
In this whitepaper learn how you and your enterprise might benefit from better software security.
Five 3D headsets to be won!
We were so impressed by the Durovis Dive headset we’ve asked the company to give some away to Reg readers.
3 Big data security analytics techniques
Applying these Big Data security analytics techniques can help you make your business safer by detecting attacks early, before significant damage is done.
The benefits of software based PBX
Why you should break free from your proprietary PBX and how to leverage your existing server hardware.
Mobile application security study
Download this report to see the alarming realities regarding the sheer number of applications vulnerable to attack, as well as the most common and easily addressable vulnerability errors.