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PHILADELPHIA (Reuters) - Bain Capital Partners said on Wednesday it withdrew its application for U.S. national security approval for its planned $2.2 billion acquisition of network-equipment maker 3Com Corp.
The parties remain committed to continuing discussions, it said.
3Com agreed in September to be acquired by Bain for $2.2 billion in a deal that would also give China's Huawei Technologies Co Ltd a 16.5 percent minority stake. Huawei could increase its stake in 3Com by up to an additional 5 percent.
In October, eight U.S. lawmakers were backing a bill suggesting that the planned buyout 3Com "threatens the national security of the United States."
3Com previously had said that Huawei would not have access to sensitive U.S. technology or U.S. government sales and that it would lack operational control or the ability to make decisions for the firm.
Last week, Bain offered to divest 3Com's Tipping Point unit, which makes national security software, a source familiar with the situation said.
(Reporting by Jessica Hall, editing by Gerald E. McCormick)
(For more M&A news and our DealZone blog, go to http://www.reuters.com/investing/news/mergers)
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