3Com shareholders sue potential buyers

By Justin Mann on
Late last month, 3Com announced that the company was going to change hands in an acquisition that would see it sold for $2.2 Billion. In particular, they hoped to have two new owners, one of whom was a former 3Com partner.

They have hit a snag in the deal, however. Several 3Com shareholders have filed suit against various parties, including the potential new owners and the 3Com directors that approved the buying price. The contention with the shareholders is that they feel the $2.2 Billion pricetag isn't enough, and in selling it for so low that the directors were not looking out for their shareholders best interests. As such, they are trying to block the buyout from occurring.

Whether the suits were filed to actually prevent the buyout or to just get more money out of the new owners isn't clear, though either way 3Com will have to deal with the suits before the buyout is supposed to take place early next year.

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