3Com’s Rescue Plan….A Sale (COMS)

September 28, 2007 by Douglas A. McIntyre

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.