3Com’s Rescue Plan….A Sale (COMS)

Posted: September 28, 2007 at 7:31 am

3Com (NASDAQ:COMS) may be a long-standing disaster story on its own, but shares are up 30% pre-market.  The Wall Street Journal has reported that 3Com is about to be acquired by private equity firm Bain Capital and Cinese equipment maker Huawei for more than $2 Billion.  This will reach more than $5.00 per share if the reports are accurate, representing more than a 50% premium. 

Shares of COMS were halted at 8:06 AM EST up 32% at $4.88 in pre-market activity and had traded 1.44 million shares.  This is one of those stocks that we had featured as one that management couldn’t fix.  Maybe private equity and the Chinese can.

Jon C. Ogg
September 28, 2007

Jon Ogg can be reached at jonogg@247wallst.com; he produces the Special Situation Investing Newsletter and does not own securities in the companies he covers.

Read more: Mergers and Buy Outs, Rumors, Technology Companies, , , ,
    • Featured Article:

    The 15 CEOs Who Should Be Paid $1 A Year

    Lee Iacocca, Chrysler’s CEO in 1979, worked for $1 a year while his company paid back taxpayers $1.2 billion in loan guarantees. Edward Liddy, former CEO of Allstate (ALL) was paid $1 a year when he stepped in to run the crumbling AIG (AIG) as the request of Henry Paulson, who was Treasury Secretary at [...]

    Read Full Story »
    Pages: 1 2 3 4