Bain Capital LLC's pending $2.2 billion buyout of Marlboro, Mass.-based 3Com Corp. ran afoul of a U.S. national security panel's concerns about a Chinese company's role as Bain's co-investor. The Committee on Foreign Investment in the United States had made it clear that proposals to ease concerns about Huawei Technologies Co. Ltd.'s involvement as a minority investor did not go far enough. CFIUS' worries that Huawei might gain access to 3Com's sensitive encryption technology prompted Bain and 3Com to withdraw their application for approval by CFIUS on Wednesday. The move cast the deal's survival into doubt.
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