McCotter Comments on Possible New Huawei/Bain/3Com Merger

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WASHINGTON DC – News circulated today Bain Capital and communist China's Huawei plan to resubmit an application seeking U.S. approval for a planned buyout of American 3Com Corporation within the next several weeks. Congressman Thaddeus McCotter (R-MI) made the following comments on the possible new merger:

"No business can sufficiently structure such deals to protect America from this stealth assault on America's national security.  It is the solemn duty of the United States government to protect our liberty from all threats; and CFIUS must again do its job and reject this latest threat to our cyber-security."

Last October Massachusetts based Bain Capital and communist China's Huawei tried to purchase 3Com Corp, an American company which provides the Pentagon with security technologies.

The deal collapsed earlier this month when the three companies withdrew their applications to the Committee on Foreign Investment in the United States (CIFIUS), because they could not calm national-security concerns with the U.S. government panel. Specifically in question was 3Com's Tipping Point unit, which sells security software used by U.S. government agencies.

McCotter, Chairman of the House Republican Policy Committee, was the first member of Congress to bring this issue to public attention and oppose it.  In early October 2007 Congressman McCotter circulated a letter signed by his colleagues and subsequently sent to CFIUS.  McCotter also continued to oppose the deal, despite communist Chinese inspired personal attacks in the media.

Bain Capital LLC is a Boston, Massachusetts-based private equity firm founded in 1984 by Mitt Romney, T. Coleman Andrews III and Eric Kriss; all partners in the consulting firm Bain & Company. Romney was the Governor of Massachusetts from 2003 to 2007. Bain Capital was originally conceived as a combined equity start-up and leveraged buyout fund, an innovative strategy at the time.