Bain Capital and Chinese network equipment company Huawei look likely to renew their $2.2 billion bid for 3Com, despite earlier government objections.
The companies last month withdrew their application to buy 3Com, after they could not assuage a US Treasury Department committee's security concerns.
3Com supplies the US government with some intrusion-detection systems from its TippingPoint subsidiary. Members of Congress have expressed fears about the security implications of Huawei's stake in the proposed acquisition since it was announced last autumn.
Now, according to the Wall Street Journal, the companies will propose that the deal limit Huawei's access to some core US-related network products, including certain Ethernet products. Huawei would still hold a 16.5 percent stake and the purchase price is expected to remain the same, the paper reported.
Bain and Huawei proposed selling TippingPoint, which 3Com had already planned to spin off, in an effort to gain US governmental approval.