Bain secures financing commitments for 3Com acquisition

By Jennifer Chiou

New York, Sept. 28 - 3Com Corp. said that Bain Capital Partners, LLC has obtained firm financing commitments from Citigroup Global Markets Asia Ltd., UBS AG, HSBC Corp. Ltd., ABN Amro Bank NV and Bank of China (Hong Kong) Ltd. for the acquisition of 3Com.

3Com, a network services company located in Marlborough, Mass., said it signed a definitive merger agreement to be acquired by affiliates of Bain Capital for $2.2 billion in cash.

Under the agreement, shareholders will receive $5.30 in cash for each 3Com share they own, representing a premium of about 44% over 3Com's closing price of $3.68 on Sept. 27.

The company said its board unanimously approved the merger agreement and recommends that 3Com's shareholders adopt the agreement.

As part of the transaction, affiliates of Huawei Technologies will acquire a minority interest in the company and become a commercial and strategic partner of 3Com.

The transaction is expected to be completed by the first quarter of calendar year 2008, subject to 3Com shareholder approval, customary regulatory approvals and other customary closing conditions.

Goldman, Sachs & Co. is 3Com's financial adviser while Citigroup Global Markets, Inc. and UBS Securities LLC are financial advisers to Bain Capital.

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