3Com postpones vote on buyout

3Com Corp. said it will adjourn today's shareholder meeting without a vote on its proposed $2.2 billion buyout by Bain Capital Partners and China's Huawei Technologies Co.

The networking equipment maker said it will continue to work with Bain to address U.S. lawmakers' concerns over the deal's implications for national security.

Huawei has strong ties to the Chinese government, and lawmakers and Bush administration officials have expressed concerns that sensitive military technology could be transferred to China through the 16.5 percent 3Com stake that would be held by Huawei.

3Com and Bain said last Wednesday they had withdrawn their filing on the deal with the Committee on Foreign Investment in the U.S.

The shareholders meeting will be reconvened on March 7.

3Com's shares jumped 49 cents, or 16.8 percent, to $3.40 in premarket trading. (AP)