Feeds

Mao to run 3Com from China

Can new boss deliver great leap forward?

Top 5 reasons to deploy VMware with Tegile

Networking equipment firm 3Com has ousted chief exec Edgar Masri in the wake of an abandoned buyout by Bain Capital Partners and Huawei, the Chinese networking firm.

Masri was replaced by Robert Mao, 64, a fluent Mandarin speaker who will be based in Beijing, which the US-based firm views as its biggest potential market. New president and chief operating officer Ronald Sege, the former chief exec of wireless networking firm Tropos Networks, will be based in the US and will handle the firm's business outside China, reporting to Mao.

Eric Benhamou remains 3Com's chairman following Tuesday's shake-up - which is perhaps just as well since the idea of installing chairman Mao at the head of a major publicly traded firm is unlikely to go down well in the US.

Basing its chief on the other side of the world is a radical, not to say ballsy, move by 3Com - a firm that's had sand kicked in its face by market leader Cisco for years after pioneering Ethernet and network computing.

Perhaps the Committee on Foreign Investment in the United States (CFIUS) had an inkling that Mao was on the ascendancy when it held out on a proposed $2.2bn buyout of 3Com by Bain and its Chinese partner. The two firms pulled out of the deal in March after failing to restructure the agreement to the satisfaction of the CIFUS.

The Treasury committee expressed national security concerns about Huawei gaining a minority stake in 3Com, whose TippingPoint unit sells intrusion prevention kit to the US government. Concerns were further inflamed by Huawei founder Ren Zhengfei's background as a former Chinese army officer. Under the original terms of the deal, Huawei would secure a 16.5 per cent stake in 3Com, while Bain retained the rest.

Huawei dismissed these concerns as "bullshit", pointing out that no objections were raised when 3Com and Huawei got into bed in a 50-50 joint venture.

The 3Com deal is not the first to involve the information security market getting into trouble over national security concerns. Israel-based Check Point dropped its $225m planned purchase of intrusion prevention firm Sourcefire in March 2006 after objections from the FBI and Pentagon were heard by the Treasury's Committee on Foreign Investments. ®

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
729 teraflops, 71,000-core Super cost just US$5,500 to build
Cloud doubters, this isn't going to be your best day
Want to STUFF Facebook with blatant ADVERTISING? Fine! But you must PAY
Pony up or push off, Zuck tells social marketeers
Oi, Europe! Tell US feds to GTFO of our servers, say Microsoft and pals
By writing a really angry letter about how it's harming our cloud business, ta
SAVE ME, NASA system builder, from my DEAD WORKSTATION
Anal-retentive hardware nerd in paws-on workstation crisis
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
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?
Protecting against web application threats using SSL
SSL encryption can protect server‐to‐server communications, client devices, cloud resources, and other endpoints in order to help prevent the risk of data loss and losing customer trust.
Intelligent flash storage arrays
Tegile Intelligent Storage Arrays with IntelliFlash helps IT boost storage utilization and effciency while delivering unmatched storage savings and performance.