3Com Corporation (NASDAQ: COMS) is essentially delaying any material events from coming in the shareholders' meeting scheduled for Friday, March 7, 2008 as it has again delayed the vote on the pending Bain Capital Partners & Huawei merger until Friday, March 21, 2008.
This extra 14 days is to allow 3Com to continue working with Bain Capital Partners to construct alternatives to address concerns raised by the Committee on Foreign Investment in the United States (CFIUS) regarding the pending merger. 3Com does note that there are no assurances that the discussions will not adversely affect the terms of the pending merger transaction.
There has already been an offer on the table that would have resulted in an already lower price, so at a minimum shareholders should already expect that to be a fact. Based upon how this has traded, it seems that the group is just going to be unable to please CFIUS as long as Huawei in China is involved in the deal. It would seem that without Huawei in the deal, the need to acquire 3Com is a far less profitable venture.
3Com hasn't been able to make the magic work, so being overly excited here is a hard task. With shares down 1% today, it sure looks like traders and investors aren't putting too much faith in this merger.
3Com's second merger vote delay not well received
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