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BIZCHINA / Biz Media Digest

IT: Huawei seeks $1b of debt to buy 3Com stake

(Shenzhen Daily)
Updated: 2006-11-29 14:37

Shenzhen-based Huawei Technologies Co., Bain Capital LLC and Silver Lake
Partners plan to borrow about US$1 billion to buy 3Com Corp.��s stake in
a joint China telecommunications venture, said bankers involved in the
deal.

Huawei Technologies, China��s biggest maker of network switches and
routers, started making offers to buy 3Com��s 51 percent in their Hong
Kong-based venture Huawei-3Com Co. on Nov. 15. Marlborough,
Massachusetts-based 3Com is also trying to buy Huawei Technologies��
portion, valuing the venture at more than US$1.8 billion, said the
bankers, who declined to be named because bidding is still taking place.

Citigroup Inc., JPMorgan Chase & Co., Morgan Stanley, ABN Amro Holding
NV, Lehman Brothers Holdings Inc. and Royal Bank of Scotland Group Plc
will provide the debt to Huawei Technologies, said the bankers. The
borrowing includes about US$600 million of six-year loans and a
seven-year bond, according to the sources.

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