Updated from 9 a.m.
soared 35% after the telecom-equipment maker agreed to sell itself to Bain Capital and China's Huawei Technologies for $5.30 a share.
"The 3Com Board of Directors and senior management team have thoroughly reviewed our strategic alternatives and have determined that the agreement with Bain Capital provides the best value for 3Com shareholders," said Edgar Masri, 3Com president and chief executive officer. "We believe that this agreement better positions 3Com to establish itself as a global networking leader, which will benefit our employees, our customers and our partners."
"As business becomes ever more global, companies need to enhance their technology infrastructure to compete more effectively in the broader economy," said Jonathan Zhu, a Bain Capital Managing Director, based in Hong Kong. "3Com has a strong competitive position, and we believe there are significant opportunities to grow by acquiring customers and introducing new products. We look forward to working with the management team and the company's strategic partners to seize the worldwide growth opportunity that exists for 3Com's communications networking solutions."
As part of the transaction, affiliates of Huawei Technologies will acquire a minority interest in the company and become a commercial and strategic partner of 3Com.
Shares rose $1.31 to $4.99.