Huawei can boost 3Com stake to 21.5%

Chinese vendor Huawei Technologies is a supporting partner in Bain Capital's $2.2 billion proposal to acquire 3Com (Huawei would end up owning 16.5 percent of 3Com if the deal is completed). However, according to documents filed with the Securities and Exchange Commission, Huawei has the option to expand its stake in the company to 21.5 percent and gain up to 11 board seats.

This may raise more flags for people who are opposed to the deal, including a group of U.S. legislators who are concerned that the deal, which would give a company closely connected to the Chinese government an ownership stake and board seats in a large U.S. firm, would be a threat to U.S. national security.

For more:
- MSNBC carries the Financial Times story [1]
- MSNBC also has a Financial Times story [2] on opposition to the deal

Related article:
The Bain/Huawei takeover of 3Com [3] was announced late last month