Huawei, Bain to resubmit 3Com application

Bain Capital and Chinese telecoms equipment manufacturer Huawei plan to resubmit their application for a buyout of US firm 3Com after ending a previous attempt over fears it would be rejected, the Wall Street Journal reported. The new application for US approval of the US$2.2 billion deal would still give Huawei control over 16.5% of the company, with Bain, a Boston-based private equity firm, holding the rest. However, the new ownership structure would limit Huawei's control over core network technologies. Huawei's and Bain's earlier application was scuttled when the companies ran into resistance from the Committee on Foreign Investment in the US (CFIUS) over the national security implications of the deal. 3Com has said it is continuing to work with Bain to address CFIUS's concerns.