HP 3Com: Directors sold company for too little

By: Peter Chubb | Posted: November 16, 2009 | No Comments
Filed under: Computers

Shareholders filed a lawsuit last week as they claim that directors of 3Com sold the company to HP for too little. The directors sold the company to Hewlett Packard for $2.7 billion, which we reported in a recent post. David Shaev, a New York bankruptcy lawyer filed the lawsuit last Thursday, according to reports from Tech Crunch.

Both HP and 3Com both stand by the deal, saying that the offer made was 39 percent over the premium of the closing price as of November 11, 2009. Hewlett Packard’s takeover of 3Com is expected to be completed by the first half of 2010.

Cisco Systems will be hoping that the deal will run in to trouble, as we know that with HP and 3Com joining forces, the rivalry between them and Cisco will intensify. The reason for this is simple; HP will now be able to move in to the lucrative Chinese market.

HP are no stranger to a new challenge, take the situation with home computers. Hewlett Packard knew that Dell were king when it came to Desktop computers, but that did not stop them from knocking Dell off the top spot and become the number one supplier of desktop computers worldwide.

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