3Com Unties the Knot with Huawei

The networking gear maker's shares dropped Wednesday after it said it would buy out its Chinese joint-venture partner

When 3Com (COMS) announced an $882 million plan to buy full ownership of its joint venture with the Chinese equipment maker Huawei Technologies on Nov. 29, the market made its displeasure known. 3Com's stock sank 9.6% to $4.06 per share in early afternoon Nasdaq trading Nov. 29.

"It's positive that the deal will wrap-up and it does provide some closure," RBC Capital Markets Corp. analyst Mark Sue said in a research note. (RBC analysts receive compensation related to the firm's investment banking business.) "But the business uncertainty is now replaced by financing uncertainty and increased execution risk," Sue said.

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