3Com To Fulfill Merger Obligations While Pursuing Breakup Fee

3Com To Pursue $66M Breakup Fee From Bain Cap >COMS

Last Update: 3/20/2008 9:48:56 PM

DOW JONES NEWSWIRES

3Com Corp. (COMS) said late Thursday it will pursue a $66 million termination fee
from Bain Capital LLC payable under their merger agreement while it seeks to
fulfill its merger obligations.

Earlier Thursday, Bain Capital abandoned its $2.2 billion deal with China’s
Huawei Technologies Co. to buy 3Com because of opposition by the Committee on
Foreign Investment in the U.S. and lawmakers.

3Com, a Marlborough, Mass., network-equipment maker said it believes Bain
Capital’s attempt to end the proposed merger of the companies is invalid.

3Com said the private-equity firm did submit a nonbinding proposal to its board,
but believes the proposal wasn’t in the best interest of 3Com’s shareholders.

The company’s shareholders will vote Friday on the proposed merger, a
precondition for seeking the termination fee from Bain Captial.

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