3Com sues Bain for $66 million merger termination fee

3Com said in a filing today it has filed suit against Bain Capital Partners Thursday in an effort to collect a $66 million “termination fee” it says it is owed from the private equity firm after Bain terminated its planned acquisition of the former Silicon Valley company that’s now headquartered in Marlborough, Mass.

The $2.2 billion deal agreed to last September was terminated by Bain in March, a day before 3Com shareholders were to meet to voted on the offer. Bain said at the time that merger talks between the parties had dissolved and that national and political security concerns threatened the deal.

3Com, however, went ahead with the meeting, at which shareholder voted overwhelming in favor of the merger, in which 3Com shareholders would have received $5.30 per share.

Shares of 3Com fell to a 52-week low of $1.76 after Bain withdrew its offer and closed Thursday at $1.88.

 

Tags: , ,

 

Share this Post



 
 
 
 
 
css.php