3Com buyout collapses

Shares in iconic technology networking provider 3Com fell 22.25% to US$2.87 after Bain Capital effectively withdrew its offer to buyout the company for US$2.2bn. Several such deals have collapsed since the credit markets turned last July. 3Com said Wednesday that the company along with affiliates of Bain Capital Partners LLC and Huawei Technologies have withdrawn their joint filing to the Committee on Foreign Investment in the U.S. concerning the parties' proposed merger.However, the companies said they remain committed to continuing discussions. 3Com said it was "very disappointed" that the parties were unable to reach a mitigation agreement with CFIUS. 3Com's board unanimously approved a merger agreement with affiliates of Bain Capital Partners for about US$2.2 billion in cash on September 28 last year.