Financial Times FT.com

Huawei to buy larger stake in 3Com

By Stephanie Kirchgaessner in Washington

Published: October 11 2007 23:58 | Last updated: October 12 2007 03:45

Huawei, the Chinese telecommunications equipment maker, could acquire up to 21.5 per cent of 3Com and hold three of the 11 board seats as part of a deal to take over the US technology group with Bain Capital, but it will have “no ability to make decisions” for the company, a regulatory filing disclosed.

The recently announced $2.2bn proposed bid for 3Com by Bain, a US private equity group, and Huawei, which will initially take a 16.5 per cent minority stake, has come under scrutiny in Washington, where lawmakers have expressed alarm at Huawei’s allegedly close ties to the Chinese government.

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