3Com buyout founders on national security concerns

From two arti­cles in the New York Times: the US gov­ern­ment is block­ing a buy­out of net­work equip­ment man­u­fac­turer 3Com. Cisco dom­i­nates that indus­try, and 3Com has never recov­ered from the dot-com bust ear­lier this decade. Dan Pri­mack posted an arti­cle that pro­vides addi­tional insight into the US government’s national secu­rity con­cerns. Boston’s Bain Cap­i­tal had teamed with Chi­nese man­u­fac­turer Huawei Tech­nolo­gies in the pro­posal. The Com­mit­tee on For­eign Invest­ment in the United States (Cfius) reviewed the pro­posal, and was con­cerned that the Chi­nese mil­i­tary might try to com­pro­mise 3Com’s secu­rity soft­ware unit, TippingPoint.

Tagged as: China, hardware, network, security, telecom, USA