Article: 3Com faces fierce rivals, collapsed deal

Question: My shares of 3Com Corp. are going nowhere but down. Any thoughts about their future? -- F.C., via the Internet

Answer: The data-networking-equipment manufacturer and its investors must cope with the harsh reality that an attractive $2.2 billion buyout offer for the company was dropped.

Private-equity firm Bain Capital Partners LLC and its Chinese partner, Huawei Technologies Co., withdrew their bid with the explanation that the U.S. government intended to block it on national security concerns.

Among its numerous businesses, 3Com sells anti-hacking and other network security services to the U.S. Defense Department. The government apparently had feared that technology information ...

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