Feeds

3Com sues 3Com over 3Com buyout

Cheapskateboard?

Reducing the cost and complexity of web vulnerability management

The $2.2bn sale of networking gear vendor 3Com has already hit litigious waters, courtesy its own shareholders.

In a filing with the Securities and Exchange Commission, 3Com disclosed that several class action lawsuits have been filed since September to block the sale to private equity firm Bain capital Partners and Huawei Technologies (pronounced Hua-h...hwwo — ah, skip it).

The shareholders contend the $2.2bn buyout price is "insufficient," that directors "breached their fiduciary duties" by agreeing to the figure, and Bain Capital and Huawei aided and abetted the alleged breaches.

3Com's proposed buyout was announced late last month, and offers shareholders a 44 per cent premium on the company's $3.68 share price before the news hit.

Such lawsuits are not altogether uncommon for corporate buyouts, used as a tool to grab more cash out of the deal — although the historical success of the tactic is somewhat questionable.

3Com was unavailable for comment as of this publication, but promises to "vigorously defend these suits" in its SEC filing.

Stockholders aside, the deal already has some in Washington feeling uneasy. Because part of the takeover is funded by the Chinese firm Huawai, Congressman Thaddeus McCotter said the deal represents "a stealth assault on America's national security." Last week, Bain Capital said it will submit to a national security review to quell any suspicions.

The deal, if it goes through, should close in Q1 next year.

Then — BAM — the Chinese take over the moon. Then who's being overly cautious? ®

Reducing the cost and complexity of web vulnerability management

More from The Register

next story
Wanna keep your data for 1,000 YEARS? No? Hard luck, HDS wants you to anyway
Combine Blu-ray and M-DISC and you get this monster
US boffins demo 'twisted radio' mux
OAM takes wireless signals to 32 Gbps
Apple flops out 2FA for iCloud in bid to stop future nude selfie leaks
Millions of 4chan users howl with laughter as Cupertino slams stable door
Students playing with impressive racks? Yes, it's cluster comp time
The most comprehensive coverage the world has ever seen. Ever
Run little spreadsheet, run! IBM's Watson is coming to gobble you up
Big Blue's big super's big appetite for big data in big clouds for big analytics
Seagate's triple-headed Cerberus could SAVE the DISK WORLD
... and possibly bring us even more HAMR time. Yay!
prev story

Whitepapers

Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.