Form 8-K for 3COM CORP
20-Apr-2005
Other Events
ITEM 8.01. Other Events.
As previously disclosed, we have the right, but not the obligation, to purchase an additional 2% of the net outstanding shares of Huawei-3Com Co., Ltd., the joint venture that we formed with Huawei Technologies Co., Ltd. ("Huawei") in November, 2003. On April 13, 2005 we informed Huawei that we were interested in beginning negotiations concerning our purchase of such shares. We are currently in the early stages of negotiating the terms of this transaction with Huawei, including the purchase price, closing date and other material terms. If this purchase is consummated, we will own a majority interest in the joint venture. Our purchase of such shares is subject to regulatory approval by the Chinese government, as well as the successful negotiation of the terms of the purchase between us and Huawei. Although we have begun negotiations with Huawei, there can be no assurance that regulatory approval will be granted, that we will be able to negotiate acceptable terms with Huawei, or that the transaction will be consummated at all.
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