3com Corp · DEFM14A · On 1/24/08
Filed On 1/24/08 8:48pm ET · SEC File 0-12867 · Accession Number 950135-8-313
As Of Filer Filing As/For/On Docs:Pgs Issuer Agent
1/25/08 3com Corp DEFM14A 1/25/08 1:157 Bowne of Boston I..01/FA
Definitive Proxy Solicitation Material -- Merger or Acquisition · Schedule 14A
Filing Table of Contents
Document/Exhibit Description Pages Size
1: DEFM14A 3com Corporation HTML 919K
This is an EDGAR HTML document rendered as filed. [ Alternative Formats ]
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
Proxy Statement Pursuant to Section 14(a) of the
Securities Exchange Act of 1934
Filed by the
Registrant þ
Filed by a Party other than the
Registrant o
Check the appropriate box:
o Preliminary
Proxy Statement
o Confidential,
for Use of the Commission Only (as permitted by Rule14a-6(e)(2))
þ Definitive
Proxy Statement
o Definitive
Additional Materials
o Soliciting
Material Pursuant to
Section 240.14a-12
3COM CORPORATION
(Name of Registrant as Specified In
Its Charter)
(Name of Person(s) Filing Proxy
Statement, if other than the Registrant)
Payment of Filing Fee (Check the appropriate box):
|
|
| o
|
No fee required.
|
| |
| þ
|
Fee computed on table below per Exchange Act
Rules 14a-6(i)(1)
and 0-11.
|
|
|
|
| |
(1)
|
Title of each class of securities to which transaction applies:
|
Common Stock, par value $0.01 per share of 3Com Corporation (the
“Common Stock”).
|
|
|
| |
(2)
|
Aggregate number of securities to which transaction applies:
|
401,995,350 shares of Common Stock; 48,842,182 options to
purchase Common Stock; and restricted stock units with respect
to 6,602,618 shares of Common Stock.
|
|
|
| |
(3)
|
Per unit price or other underlying value of transaction computed
pursuant to Exchange Act
Rule 0-11
(set forth the amount on which the filing fee is calculated and
state how it was determined):
|
The maximum aggregate value was determined based upon the sum of
(A) 401,995,350 shares of Common Stock multiplied by $5.30
per share; (B) options to purchase 48,842,182 shares of
Common Stock multiplied by $.0746 (which is the difference
between $5.30 and the weighted average exercise price of $5.2254
per share); and (C) restricted stock units with respect to
6,602,618 shares of Common Stock multiplied by $5.30 per
share. In accordance with Section 14(g) of the Securities
Exchange Act of 1934, as amended, the filing fee was determined
by multiplying 0.0000307 by the sum of the preceding sentence.
|
|
|
| |
(4)
|
Proposed maximum aggregate value of transaction:
|
$2,169,212,857
$66,595
|
|
| þ
|
Fee paid previously with preliminary materials.
|
| |
| o
|
Check box if any part of the fee is offset as provided by
Exchange Act
Rule 0-11(a)(2)
and identify the filing for which the offsetting fee was paid
previously. Identify the previous filing by registration
statement number, or the Form or Schedule and the date of its
filing.
|
|
|
|
| |
(1)
|
Amount Previously Paid:
|
|
|
|
| |
(2)
|
Form, Schedule or Registration Statement No.:
|
3Com
Corporation
350 Campus Drive
Marlborough, Massachusetts
01752-3064
Dear Stockholder:
The board of directors of 3Com Corporation, a Delaware
corporation, has unanimously approved a merger agreement
providing for the acquisition of 3Com by Diamond II
Holdings, Inc., an entity formed by investment vehicles
sponsored by Bain Capital Partners, LLC. If the merger
contemplated by the merger agreement is completed, you will be
entitled to receive $5.30 in cash, without interest and less any
applicable withholding tax, for each share of 3Com common stock
owned by you immediately prior to completion of the merger
(unless you have properly and validly perfected your statutory
rights of appraisal with respect to the merger).
At a special meeting of our stockholders, you will be asked to
consider and vote on a proposal to adopt the merger agreement.
After careful consideration, our board of directors has
unanimously approved the merger agreement, the merger and the
other transactions contemplated by the merger agreement and
determined that the merger is fair to and in the best interests
of 3Com and its stockholders. THE BOARD OF DIRECTORS
UNANIMOUSLY RECOMMENDS THAT YOU VOTE “FOR” THE
PROPOSAL TO ADOPT THE MERGER AGREEMENT.
The special meeting will be held on
February 29, 2008, at
8:00 a.m. local time, at our headquarters, 350 Campus
Drive, Marlborough, Massachusetts
01752-3064.
Notice of the special meeting and the related proxy statement
are enclosed.
The attached proxy statement provides you with detailed
information about the special meeting, the merger agreement and
the merger. A copy of the merger agreement is attached as
Annex A to the proxy statement. We encourage you to read
the entire proxy statement and the merger agreement carefully.
You may also obtain more information about 3Com from documents
we have filed with the Securities and Exchange Commission.
Your vote is very important regardless of the number of
shares you own. We cannot complete the merger unless the
holders of a majority of outstanding shares of common stock that
are entitled to vote at the special meeting vote in favor of the
proposal to adopt the merger agreement. The failure of any
stockholder to vote on the proposal to adopt the merger
agreement will have the same effect as a vote against the
proposal to adopt the merger agreement.
Whether or not you plan to attend the special meeting, please
complete, date, sign and return, as promptly as possible, the
attached proxy in the accompanying reply envelope, or submit
your proxy by telephone or the Internet. If you have
Internet access, we encourage you to record your vote via the
Internet. If you attend the special meeting and vote in person,
your vote by ballot will revoke any proxy previously submitted.
If you hold your shares through a broker or other nominee, you
should follow the procedures provided by your broker or nominee.
Thank you in advance for your cooperation and continued support.
Sincerely,
Edgar Masri
President and Chief Executive Officer
Neither the Securities and Exchange Commission nor any state
securities regulatory agency has approved or disapproved the
merger, passed upon the merits or fairness of the merger or
passed upon the adequacy or accuracy of the disclosure in this
document. Any representation to the contrary is a criminal
offense.
3Com
Corporation
350 Campus Drive
Marlborough, Massachusetts
01752-3064
NOTICE OF SPECIAL MEETING OF
STOCKHOLDERS
To the Stockholders of 3Com Corporation:
A special meeting of stockholders of 3Com Corporation, a
Delaware corporation (the
“Company”), will be held on
February 29, 2008, at 8:00 a.m. local time, at the
Company’s headquarters, 350 Campus Drive, Marlborough,
Massachusetts
01752-3064,
for the following purposes:
1.
Adoption of the Merger Agreement. To
consider and vote on a proposal to adopt the Agreement and Plan
of Merger (the
“Merger Agreement”), dated as of
September 28, 2007, by and among
the Company,
Diamond II Holdings, Inc., (
“Newco”) and
Diamond II Acquisition Corp., an indirect wholly-owned
subsidiary of Newco (
“Merger Sub”). A copy of the
Merger Agreement is attached as Annex A to the attached
proxy statement. Pursuant to the terms of the Merger Agreement,
Merger Sub will merge with and into
the Company (the
“Merger”) and each outstanding share of the
Company’s common stock, par value $0.01 per share (the
“Common Stock”) (other than shares owned by Newco,
Merger Sub or
the Company, or by any direct or indirect
wholly-owned subsidiary of Newco, Merger Sub or
the Company, in
each case immediately prior to the effective time of the Merger,
and shares held by stockholders, if any, who have properly and
validly perfected statutory rights of appraisal with respect to
the Merger), will be converted into the right to receive $5.30
in cash, without interest and less any applicable withholding
tax.
2. Adjournment or Postponement of the Special
Meeting. To approve the proposal to adjourn or
postpone the special meeting, if necessary or appropriate, to
solicit additional proxies if there are insufficient votes at
the time of the special meeting to adopt the Merger Agreement.
Only stockholders of record of
the Company’s Common Stock
as of the close of business on
January 22, 2008 are
entitled to notice of and to vote at the special meeting or at
any adjournment or postponement of the special meeting. All
stockholders of record are cordially invited to attend the
special meeting in person.
Your vote is very important, regardless of the number of
shares of Common Stock you own. Adoption of the
Merger Agreement requires the affirmative vote of the holders of
a majority of the shares of Common Stock outstanding on the
record date of the special meeting. Even if you plan to attend
the special meeting in person, we request that you complete,
sign, date and return the enclosed proxy or submit your proxy by
telephone or the Internet prior to the special meeting to ensure
that your shares will be represented at the special meeting if
you are unable to attend. If you sign, date and mail your proxy
card without indicating how you wish to vote, your vote will be
counted as a vote “FOR” the adoption of the
Merger Agreement.
If you fail to vote by proxy or in person, the effect will be
that your shares will not be counted for purposes of determining
whether a quorum is present at the special meeting and, if a
quorum is present, will have the same effect as a vote against
the adoption of the Merger Agreement. If you are
a stockholder of record, voting in person at the special meeting
will revoke any proxy previously submitted. If you hold your
shares through a bank, broker or other custodian, you must
obtain a legal proxy from such custodian in order to vote in
person at the special meeting. If your shares are held by a bank
or broker, please bring to the special meeting your statement
evidencing your beneficial ownership of Common Stock and photo
identification.
Stockholders of
the Company who do not vote in favor of the
proposal to adopt the Merger Agreement will have the right to
seek appraisal of the fair value of their shares of Common Stock
if the Merger is completed, but only if they properly and
validly perfect statutory rights of appraisal before the vote is
taken on the Merger Agreement and comply with all requirements
of Delaware law, which are summarized in the attached proxy
statement.
WHETHER OR NOT YOU PLAN TO ATTEND THE SPECIAL MEETING, PLEASE
COMPLETE, DATE, SIGN AND RETURN, AS PROMPTLY AS POSSIBLE, THE
ENCLOSED PROXY IN THE ACCOMPANYING REPLY ENVELOPE, OR SUBMIT
YOUR PROXY BY TELEPHONE OR THE INTERNET. IF YOU HAVE INTERNET
ACCESS, WE ENCOURAGE YOU TO RECORD YOUR VOTE VIA THE INTERNET.
STOCKHOLDERS WHO ATTEND THE SPECIAL MEETING MAY REVOKE THEIR
PROXIES AND VOTE IN PERSON.
By Order of the Board of Directors,
Neal D. Goldman
Executive Vice President, Chief Administrative and Legal
Officer and Secretary
Marlborough, Massachusetts
TABLE OF
CONTENTS
| |
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
1
|
|
|
|
|
|
10
|
|
|
|
|
|
14
|
|
|
|
|
|
15
|
|
|
|
|
|
16
|
|
|
|
|
|
16
|
|
|
|
|
|
16
|
|
|
|
|
|
16
|
|
|
|
|
|
17
|
|
|
|
|
|
17
|
|
|
|
|
|
17
|
|
|
|
|
|
18
|
|
|
|
|
|
18
|
|
|
|
|
|
18
|
|
|
|
|
|
19
|
|
|
|
|
|
19
|
|
|
|
|
|
26
|
|
|
|
|
|
28
|
|
|
|
|
|
34
|
|
|
|
|
|
36
|
|
|
|
|
|
39
|
|
|
|
|
|
39
|
|
|
|
|
|
45
|
|
|
|
|
|
46
|
|
|
|
|
|
47
|
|
|
|
|
|
47
|
|
|
|
|
|
47
|
|
|
|
|
|
48
|
|
|
|
|
|
48
|
|
|
|
|
|
48
|
|
|
|
|
|
49
|
|
|
|
|
|
49
|
|
|
|
|
|
50
|
|
|
|
|
|
50
|
|
|
|
|
|
52
|
|
|
|
|
|
54
|
|
|
|
|
|
55
|
|
|
|
|
|
57
|
|
|
|
|
|
58
|
|
|
|
|
|
60
|
|
|
|
|
|
60
|
|
|
|
|
|
62
|
|
|
|
|
|
64
|
|
i
| |
|
|
|
|
|
|
|
Page
|
|
|
|
|
|
|
64
|
|
|
|
|
|
65
|
|
|
|
|
|
66
|
|
|
|
|
|
67
|
|
|
|
|
|
69
|
|
|
|
|
|
72
|
|
|
|
|
|
72
|
|
|
|
|
|
73
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Annex B Opinion
of Goldman, Sachs & Co.
|
|
|
|
|
|
Annex C Section 262
of the Delaware General Corporation Law
|
|
|
|
|
ii
Important Notice Regarding Internet Availability of Proxy
Materials for the Special Meeting of Stockholders to be held on
February 29, 2008. The Proxy Statement is available at
www.proxyvote.com
PROXY
STATEMENT
References to
“3Com,” the
“Company,”
“we,” “our” or
“us” in this proxy
statement refer to 3Com Corporation and its
subsidiaries unless
otherwise indicated by context.
SUMMARY
The following summary highlights selected information in this
proxy statement and may not contain all the information that may
be important to you. Accordingly, we encourage you to read
carefully this entire proxy statement, its annexes and the
documents referred to or incorporated by reference in this proxy
statement. Each item in this summary includes a page reference
directing you to a more complete description of that topic. See
“Where You Can Find More Information” beginning on
page 73.
Proposal
You are being asked to vote on a proposal to adopt the Agreement
and
Plan of Merger, dated
September 28, 2007 (the
“Merger Agreement”), by and among
the Company,
Diamond II Holdings, Inc. (
“Newco”) and
Diamond II Acquisition Corp. (
“Merger Sub”).
Pursuant to the Merger Agreement, Merger Sub will merge with and
into 3Com and 3Com will be the surviving corporation and an
indirect wholly-owned subsidiary of Newco (the
“Merger”). In the event that there are not sufficient
votes at the time of the special meeting to adopt the Merger
Agreement, the stockholders may be asked to vote on a proposal
to adjourn or postpone the special meeting to solicit additional
proxies. See
“The Special Meeting” beginning on
page 16.
The
Parties to the Merger (Page 15)
3Com is a Delaware corporation with its headquarters in
Marlborough, Massachusetts. 3Com was incorporated in California
on June 4, 1979 and reincorporated in Delaware on
June 12, 1997. 3Com is a provider of secure, converged
voice and data networking solutions for enterprises of all
sizes. 3Com offers a broad line of products backed by world
class sales, service and support, which excel at delivering
business value for its customers. 3Com also includes H3C
Technologies Co., Limited (
“H3C”), a China-based
provider of network infrastructure products that provides
cost-effective product development. Through its TippingPoint
division, 3Com is a provider of network-based intrusion
prevention systems that deliver in-depth application protection,
infrastructure protection and performance protection. 3Com is
organized into three primary business groups: H3C, the data and
voice business unit (
“DVBU”) and TippingPoint.
Newco was formed in anticipation of the Merger by investment
vehicles sponsored by Bain Capital Partners, LLC (“Bain
Capital”). Newco was formed solely for the purpose of
acquiring 3Com and has not engaged in any business except for
activities incidental to its formation and as contemplated by
the Merger Agreement. At the effective time of the Merger, Newco
will be majority-owned and controlled by investment vehicles
sponsored by Bain Capital. Bain Capital is part of Bain Capital,
LLC, a
U.S.-based,
global private investment firm whose affiliates manage several
pools of capital including private equity, venture capital
public equity and leverage debt assets with more than
$65 billion in assets under management. Since its inception
in 1984, Bain Capital has made private equity investments and
add-on acquisitions in over 300 companies around the world,
including numerous investments in the software and technology
sectors such as Ameritrade, Applied Systems, Aspect Development,
Chip PAC, DoubleClick, Epsilon Data Management, Experian,
Gartner Group, Integrated Circuit Systems, MCI, NXP, SunGard
Data Systems, U.S. Internetworking and UGS. At the
effective time of the Merger, an affiliate of Huawei
Technologies Co. Ltd. (“Huawei”) will make a
non-controlling, minority investment in Newco (the affiliate of
Huawei together with Bain Capital, the “Investors”).
Upon completion of the transaction, Bain Capital will control
83.5% of the voting shares of 3Com’s new parent company and
affiliates of Huawei will control 16.5% of the voting shares.
Bain Capital will have the right to appoint 8 of 11 members of
the board and an affiliate of Huawei will have the right to
appoint 3 of 11
members of the board. Huawei will not have any other role in the
management of Newco. Bain Capital and an affiliate of Huawei
will enter into a shareholders’ agreement, which provides
customary shareholders’ protections for Huawei’s
minority investment.
After completion of the transaction, Huawei may increase its
equity interest in Newco by up to 5%, but no more, by earning
warrants that would give Huawei or its affiliate the right to
make additional cash investments in Newco if and only if Huawei
purchases certain agreed amounts of products from H3C and 3Com
under the OEM arrangements. Pursuant to these arrangements,
Huawei could increase its ownership in Newco over time to a
maximum of 21.5% by purchasing products and exercising warrants,
but will not be able to reach this 21.5% equity ownership until
2011. The minority rights set forth in the shareholders’
agreement, including the right to appoint board members, will
not be increased if additional shares are acquired by virtue of
the warrants.
Merger Sub was formed by investment vehicles sponsored by Bain
Capital solely for the purpose of completing the proposed
Merger. Merger Sub is an indirect, wholly-owned subsidiary of
Newco and has not engaged in any business except for activities
incidental to its formation and as contemplated by the Merger
Agreement. Subject to the terms of the Merger Agreement, at the
effective time, Merger Sub will merge with and into 3Com. Upon
the consummation of the proposed Merger, Merger Sub will cease
to exist, 3Com will continue as the Surviving Corporation and
will become an indirect wholly-owned subsidiary of Newco.
The
Merger (Page 19)
The Merger Agreement provides that Merger Sub will merge with
and into 3Com. In the Merger, each outstanding share of 3Com
common stock, par value $0.01 per share (the “Common
Stock”) that is outstanding immediately prior to the
effective time of the Merger, (other than shares owned by Newco,
Merger Sub or 3Com, or by any direct or indirect wholly-owned
subsidiary of Newco, Merger Sub or 3Com, and shares held by
stockholders, if any, who have properly and validly perfected
statutory rights of appraisal with respect to the Merger) will
be converted into the right to receive $5.30 in cash, without
interest and less any applicable withholding tax, which we refer
to in this proxy statement as the merger consideration.
Effects
of the Merger (Page 48)
If the Merger is completed, you will be entitled to receive
$5.30 in cash, without interest and less any applicable
withholding taxes, for each share of Common Stock that you own
immediately prior to the completion of the Merger, unless you
have properly and validly perfected your statutory rights of
appraisal with respect to the Merger. As a result of the Merger,
3Com will cease to be an independent, publicly traded company.
You will not own any shares of the Surviving Corporation and
will not have any rights as a stockholder.
The
Special Meeting (Page 16)
Time,
Place and Date (Page 16)
The special meeting will be held on
February 29, 2008 at
8:00 a.m. local time, at
the Company’s headquarters, 350
Campus Drive, Marlborough, Massachusetts
01752-3064.
Purpose
(Page 16)
You will be asked to consider and vote upon a proposal to adopt
the Merger Agreement, pursuant to which Merger Sub will merge
with and into
the Company.
Record
Date and Quorum (Page 16)
You are entitled to vote at the special meeting if you owned
shares of Common Stock at the close of business on
January 22, 2008 the record date for the special meeting.
You will have one vote for each share of Common Stock that you
owned as of the close of business on the record date. As of the
close of business on the record date, there were
402,388,726 shares of Common Stock outstanding and entitled
to vote. A majority of the shares of Common Stock issued and
outstanding on the record date represented at the special
meeting in person or by a duly authorized and properly completed
proxy constitutes a quorum for the purpose of considering the
proposals.
2
Vote
Required (Page 16)
Completion of the Merger requires the adoption of the Merger
Agreement by the affirmative vote of the holders of a majority
of shares of Common Stock outstanding on the record date for
special meeting. Failure to vote your shares of Common Stock
by proxy or in person or an abstention will have the same effect
as voting against approval of the Merger Agreement. Approval
of the proposal to adjourn or postpone the special meeting, if
necessary or appropriate, for the purpose of soliciting
additional proxies requires the affirmative vote of a majority
of the votes cast by the holders of all Common Stock present in
person or represented by proxy at the special meeting and
entitled to vote on the matter. Failure to vote your shares of
our Common Stock or an abstention will have no effect on the
approval of the proposal to adjourn or postpone the special
meeting.
Common
Stock Ownership of Directors and Executive Officers
(Page 16)
As of the close of business on the record date, the directors
and executive officers of 3Com held in the aggregate
approximately 0.70% of the shares of Common Stock entitled to be
voted at the special meeting. In the aggregate, these shares
represent approximately 1.4% of the votes necessary to approve
the proposal to adopt the Merger Agreement at the special
meeting.
Voting
and Proxies (Page 16)
Any stockholder of record entitled to vote at the special
meeting may submit a proxy by telephone, the Internet, by
returning the enclosed proxy card by mail, or by voting in
person by appearing at the special meeting. If your shares of
Common Stock are held in “street name” by your broker,
you should instruct your broker on how to vote your shares of
Common Stock using the instructions provided by your broker. If
you do not provide your broker with instructions, your shares of
Common Stock will not be voted and that will have the same
effect as a vote “AGAINST” the proposal to
adopt the Merger Agreement. The persons named in the attached
proxy will also have discretionary authority to vote on any
proposals to adjourn or postpone the special meeting.
Revocability
of Proxy (Page 17)
Any stockholder of record who executes and returns a proxy card
(or submits a proxy via telephone or the Internet) may revoke
the proxy at any time before it is voted at the special meeting
in any one of the following ways:
|
|
|
| |
•
|
by notifying our Secretary, Neal D. Goldman, at 350 Campus
Drive, Marlborough, Massachusetts
01752-3064;
|
| |
| |
•
|
by attending the special meeting and voting in person (your
attendance at the special meeting will not, by itself, revoke
your proxy; you must vote in person at the special meeting);
|
| |
| |
•
|
by submitting a later-dated proxy card; or
|
| |
| |
•
|
if you voted by telephone or the Internet, by voting a second
time by telephone or Internet.
|
If you hold your shares through a broker, bank or other nominee
and you have instructed a broker, bank or other nominee to vote
your shares of Common Stock, follow the directions received from
your broker, bank or other nominee to change your vote.
Treatment
of Options and Other Awards (Page 49)
Stock Options. Immediately prior to the
effective time of the Merger, except as otherwise agreed to by
the holder and Newco, all outstanding options to purchase Common
Stock under
the Company’s equity incentive plans will
become fully vested. All such options not exercised prior to the
Merger will be cancelled and converted into the right to receive
a cash payment equal to the number of shares of Common Stock
underlying the options multiplied by the amount (if any) by
which $5.30 exceeds the exercise price, without interest and
less any applicable withholding taxes.
3
Restricted Stock. Immediately prior to
the effective time of the Merger, except as otherwise agreed by
a holder and Newco, all shares of restricted stock will vest and
those shares will be cancelled and converted into the right to
receive a cash payment equal to the number of shares of
restricted stock multiplied by $5.30, without interest and less
any applicable withholding taxes.
Restricted Stock Units. Immediately
prior to the effective time of the Merger, except as otherwise
agreed by a holder and Newco, all restricted stock units will
vest and settle through the issuance of shares of Common Stock
and thereafter be treated in the same manner as restricted stock.
Employee Stock Purchase Plan. Prior to
the consummation of the Merger, the then-current offering period
under our Employee Stock Purchase Plan will be terminated and
all funds in each participant’s account will be applied
toward the purchase of shares of Common Stock on the terms and
conditions set forth under our Employee Stock Purchase Plan.
Thereafter, those shares will be entitled to receive the merger
consideration on the same basis as other shares of Common Stock.
All amounts withheld by us on behalf of participants in our
Employee Stock Purchase Plan that have not been used to purchase
Common Stock prior to the effective time of the Merger will be
returned to the participants without interest pursuant to the
terms of our Employee Stock Purchase Plan.
Recommendation
of Our Board of Directors (Page 26)
Our board of directors, at a meeting duly called and held at
which all directors were present, unanimously
(i) determined that the terms of the Merger are fair and in
the best interests of
the Company and its stockholders and
declared it advisable to enter into the Merger Agreement
providing for the merger of Merger Sub with and into the
Company, in accordance with the Delaware General Corporation Law
(
“DGCL”), upon the terms and subject to the conditions
set forth in the Merger Agreement, (ii) approved the
execution, delivery and performance of the Merger Agreement and
the consummation of the transactions contemplated thereby, in
accordance with the DGCL, upon the terms and conditions
contained in the Merger Agreement and (iii) resolved to
recommend that the stockholders of
the Company adopt the Merger
Agreement, in accordance with the applicable provisions of the
DGCL.
The board of directors unanimously recommends that our
stockholders vote “FOR” the proposal to adopt the
Merger Agreement and “FOR” the proposal to adjourn or
postpone the special meeting, if necessary or appropriate, to
solicit additional proxies.
In reaching its decision, our board of directors evaluated a
variety of business, financial and market factors and consulted
with our management team and legal and financial advisors. See
“The Merger — Reasons for the Merger;
Recommendation of Our Board of Directors” beginning on
page 26.
Interests
of the Company’s Directors and Executive Officers in the
Merger (Page 39)
In considering the recommendation of the board of directors, you
should be aware that our directors and executive officers may
have interests in the Merger that are different from, or in
addition to, your interests as a stockholder and that may
present actual or potential conflicts of interest, including the
following:
|
|
|
| |
•
|
our directors and executive officers will receive cash
consideration for their vested and unvested stock options,
restricted stock and restricted stock units in connection with
the Merger;
|
| |
| |
•
|
each of our current executive officers is a party to a
management retention agreement (or with respect to
Mr. Masri, his employment agreement) that provides certain
severance payments and benefits in the case of the executive
officer’s termination of employment under certain
circumstances following a change of control;
|
| |
| |
•
|
the Merger Agreement provides for indemnification arrangements
for each of our current and former directors and executive
officers that will continue for six (6) years following the
effective time of the Merger as well as insurance coverage
covering such director or executive officer’s service to
the Company as a director or executive officer; and
|
| |
| |
•
|
although no agreements have been entered into as of the date of
this proxy statement, it is expected that a number of our
executive officers will remain after the Merger is completed and
such executive
|
4
officers may enter into new arrangements with the Investors or
their affiliates regarding employment with the Surviving
Corporation or the right to purchase or participate in the
equity of the Surviving Corporation.
The board of directors was aware of these potential conflicts of
interest and considered them, among other matters, in reaching
its decision to approve the Merger Agreement and the Merger and
the recommendation that our stockholders vote in favor of the
proposal to adopt the Merger Agreement.
Opinion
of Goldman, Sachs & Co. (Page 28)
Our board of directors considered the financial analyses and
opinion of Goldman, Sachs & Co. (
“Goldman
Sachs”), delivered orally to our board of directors and
subsequently confirmed in writing, to the effect that, as of
September 28, 2007, and based upon and subject to the
factors and assumptions set forth therein, the $5.30 per share
in cash to be received by the holders of shares of Common Stock
pursuant to the Merger Agreement was fair from a financial point
of view to such holders. The full text of the written opinion of
Goldman Sachs, dated
September 28, 2007, which sets forth
assumptions made, procedures followed, matters considered and
limitations on the review undertaken in connection with the
opinion, is attached as Annex B and is incorporated in this
proxy statement by reference.
Goldman Sachs provided its
opinion for the information and assistance of our board of
directors in connection with its consideration of the Merger.
The Goldman Sachs opinion does not constitute a recommendation
as to how any holder of shares of Common Stock should vote with
respect to the adoption of the Merger Agreement or any other
matter. Pursuant to an engagement letter between 3Com and
Goldman Sachs, 3Com has agreed to pay Goldman Sachs a
transaction fee equal to approximately $24 million, the
principal portion of which is payable upon completion of the
Merger.
Financing
(Page 36)
The aggregate amount of funds necessary to complete the Merger
is anticipated to be approximately $2.54 billion. These
payments are expected to be funded by Newco and Merger Sub with
a combination of equity contributions by the Investors, debt
financing obtained by Merger Sub and made available to certain
newly formed wholly-owned
subsidiaries of Newco, and, to the
extent available, cash of 3Com. Newco and Merger Sub have
obtained equity and debt financing commitments described below
in connection with the transactions contemplated by the Merger
Agreement.
Merger Sub has obtained debt financing commitments of up to an
aggregate of $1.2 billion consisting of
(i) commitments from Citibank N.A., Hong Kong Branch, UBS
AG, Singapore Branch, The Hongkong and Shanghai Banking
Corporation Limited, ABN Amro Bank N.V., Bank of China (Hong
Kong) Limited, China Development Bank and WestLB AG Hong Kong
Branch to provide debt financing in the form of senior secured
facilities consisting of (A) a term loan facility in the
aggregate principal amount of up to $750 million and
(B) a revolving facility in an aggregate principal amount
of $50 million and (ii) commitments from UBS AG,
Singapore Branch, Citibank, N.A. and The Hongkong and Shanghai
Banking Corporation Limited to provide debt financing in the
form of a bridge loan facility in an aggregate principal amount
of $400 million.
Regulatory
Approvals (Page 46)
Under the
Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the “HSR
Act”), and the rules promulgated thereunder by the Federal
Trade Commission (“FTC”), provides that transactions
such as the Merger may not be completed until notification and
report forms have been filed with the FTC and the Antitrust
Division of the Department of Justice (“DOJ”) and the
applicable waiting period has expired or been terminated. 3Com
and Newco filed notification and report forms under the HSR Act
with the FTC and the Antitrust Division of the DOJ, and the
applicable waiting period has expired.
The Merger is also subject to review by the governmental
authorities of various other jurisdictions under the antitrust
laws of those jurisdictions. In all of those jurisdictions, the
necessary approvals have been obtained or the applicable waiting
period has expired without any objections being raised by the
governmental authorities.
5
The parties have made a joint voluntary filing of the
transaction with the Committee on Foreign Investment in the
United States (“CFIUS”). The parties are working
closely with CFIUS to provide U.S. officials with information
about the transaction.
Except for these filings and the filing of a certificate of
merger in Delaware at or before the effective date of the
Merger, we are unaware of any material federal, state or foreign
regulatory requirements or approvals required for the execution
of the Merger Agreement or completion of the Merger.
Procedure
for Receiving Merger Consideration (Page 50)
Promptly following the effective time of the Merger, a payment
agent will mail a letter of transmittal and instructions to you
and the other 3Com stockholders. The letter of transmittal will
tell you how to surrender your stock certificates in exchange
for the merger consideration. You should not return your
stock certificates with the proxy card, and you should return
your stock certificates with the letter of transmittal.
Material
United States Federal Income Tax Consequences
(Page 45)
The exchange of shares of Common Stock for cash pursuant to the
Merger Agreement generally will be a taxable transaction for
U.S. federal income tax purposes. Stockholders who exchange
their shares of Common Stock in the Merger will generally
recognize gain or loss in an amount equal to the difference, if
any, between the cash received in the Merger and their adjusted
tax basis in their shares of Common Stock surrendered. Because
individual circumstances may differ, we urge you to consult your
tax advisor for a complete analysis of the effect of the Merger
on your federal, state and local
and/or
foreign taxes.
Conditions
to the Merger (Page 57)
Before we can complete the Merger, a number of conditions must
be satisfied. These include:
|
|
|
| |
•
|
the adoption of the Merger Agreement by our stockholders;
|
| |
| |
•
|
the expiration or termination of the waiting periods under the
HSR Act and the antitrust laws of various other jurisdictions;
|
| |
| |
•
|
the absence of laws, governmental judgments or orders that have
the effect of enjoining or otherwise prohibiting the
consummation of the Merger;
|
| |
| |
•
|
performance by each of the parties of material obligations under
the Merger Agreement in all material respects;
|
| |
| |
•
|
the accuracy of the representations and warranties of each of
the parties to the Merger Agreement, subject to the materiality
standards set forth in the Merger Agreement and described in
“The Merger Agreement — Conditions to the
Merger” beginning on page 57;
|
| |
| |
•
|
the delivery of closing certificates by each of the parties with
respect to the satisfaction of the conditions relating to its
representations and warranties and material obligations; and
|
| |
| |
•
|
the absence of an event or occurrence following the execution of
the Merger Agreement that is continuing that has had or is
reasonably expected to have a “Material Adverse
Effect.”
|
Restrictions
on Solicitations of Other Offers (Page 58)
The Merger Agreement restricts our ability to solicit, engage in
or encourage discussions or negotiations with a third party
regarding specified transactions regarding
the Company and to
provide information about
the Company to any third party.
Notwithstanding these restrictions, under certain limited
circumstances required for our board to comply with its
fiduciary duties, our board may respond to a bona fide
unsolicited alternative acquisition proposal or terminate the
Merger Agreement and enter into an agreement with respect to a
superior proposal after paying a termination fee.
6
Termination
of the Merger Agreement (Page 60)
The Merger Agreement may be terminated at any time prior to the
consummation of the Merger, whether before or after stockholder
approval has been obtained:
|
|
|
| |
•
|
By mutual agreement of 3Com and Newco;
|
| |
| |
•
|
By either 3Com or Newco if:
|
|
|
|
| |
•
|
the Merger is not consummated by April 28, 2008 (the
“Termination Date”), provided that the terminating
party has not taken any action or failed to take any action in
breach of the Merger Agreement which was the principal cause of
or resulted in the failure of any of the conditions of the
Merger to be satisfied by such date;
|
| |
| |
•
|
a final, non-appealable law, governmental judgments or order has
been enacted, issued, promulgated or granted and is in effect
that prohibits or enjoins or otherwise prevents the consummation
of the Merger and the terminating party has used reasonable best
efforts to appeal such order, is not in breach of the Merger
Agreement and has not taken or failed to take any action in
breach of the Merger Agreement that was the principal cause of,
or resulted in, the passage of such law or issuance of such
order;
|
| |
| |
•
|
our stockholders do not adopt the Merger Agreement at the
special meeting or any adjournment or postponement thereof,
provided that the Company may not terminate the Merger Agreement
if it has materially violated its obligations under certain
provisions of the Merger Agreement as described more fully in
“The Merger Agreement — Termination of the Merger
Agreement” beginning on page 60; and
|
| |
| |
•
|
there is a breach or violation by the non-terminating party of
any covenant, agreement or obligations or an inaccuracy of any
of the non-terminating parties representations or warranties set
forth in the Merger Agreement such that the closing conditions
would not be satisfied on the Termination Date and the
terminating party is not itself in breach of its
representations, warranties, covenants or agreements such that
the closing conditions would not be satisfied;
|
|
|
|
| |
•
|
By Newco if our board of directors withdraws or adversely
modifies its recommendation or approval of the Merger Agreement;
within five (5) business days of the commencement of a
tender offer that constitutes an acquisition proposal, the board
fails to publicly reaffirm the recommendation and recommend that
the stockholders vote against such acquisition proposal and not
tender any shares in such tender or exchange offer; fails to
hold the stockholder meeting within thirty (30) days of the
mailing of this proxy statement; or fails to reconfirm the
recommendation within the time frames and under the
circumstances described in the Merger Agreement; and
|
| |
| |
•
|
By 3Com if all of the conditions to the obligations of Newco and
Merger Sub to consummate the Merger have been satisfied or
waived, but Newco and Merger Sub have breached their obligations
to cause the Merger to be consummated.
|
The Merger Agreement may also be terminated by 3Com prior to the
special meeting in order to enter into a definitive agreement
for a superior proposal, provided that 3Com subsequently pay
Newco a termination fee, as described in further detail in
“The Merger Agreement — Recommendation
Withdrawal/Termination in Connection with a Superior
Proposal” beginning on page 60.
Termination
Fees (Page 62)
Under certain circumstances, in connection with the termination
of the Merger Agreement, we will be required to pay to Newco a
termination fee of $66 million. We also may be required to
pay Newco their out of pocket fees and expenses (not to exceed
$20 million) in connection with the Merger. In
circumstances where we are required to pay such fees and
expenses, if we are subsequently required to pay a termination
fee, any fees and expenses previously reimbursed will be
deducted from the termination fee owed. See “The Merger
Agreement — Termination Fees and Expenses”
beginning on page 62 for a detailed discussion of the
termination fees.
7
Newco has agreed to pay
the Company a termination fee of
$66 million if we terminate the Merger Agreement in
circumstances under which the conditions to the Merger are
satisfied but (i) Newco and Merger Sub have not received
the proceeds of the debt financing or (ii) a
U.S. federal regulatory agency (that is not an antitrust
regulatory agency) has informed Newco, Merger Sub or
the Company
(or any of their representatives) that it intends to take action
to prevent the Merger. In the event that (i) all of the
conditions to the Merger are satisfied, (ii) the debt
financing has been funded or would be funded upon funding of the
equity financing and (iii) no U.S. federal regulatory
agency has informed Newco, Merger Sub or
the Company (or any of
their representatives) that it intends to take action to prevent
the Merger, and (iv) Newco and Merger Sub fail to
consummate the Merger, Newco has agreed to pay
the Company a
termination fee of $110 million. See
“The Merger
Agreement — Termination Fees and Expenses”
beginning on page 62 for a detailed discussion of the
termination fees.
Remedies
(Page 64)
In the event that
the Company or Newco receive a termination fee
as described above, such fee shall be deemed to be liquidated
damages for any and all damages incurred by the party receiving
such fee in connection with the matter forming the basis for
such termination and no other claims may be brought with respect
to such matters. Except in the case of fraud,
the Company’s
right to receive the termination fee as described above is the
sole and exclusive remedy of
the Company and its
subsidiaries
against Newco, Merger Sub, the Investors and any of their
affiliates for any damages suffered as a result of a failure of
the Merger to be consummated, or for a breach or failure to
perform under the Merger Agreement or otherwise. Except in the
case of fraud, Newco’s right to receive the termination fee
as described above in circumstances that such fee is payable, or
to recover damages from
the Company in circumstances that such
fee is not payable, is the sole and exclusive remedy of Newco,
Merger Sub and their affiliates against
the Company, its
subsidiaries and any of their affiliates for any damages
suffered as a result of a failure of the Merger to be
consummated, or for a breach or failure to perform under the
Merger Agreement or otherwise. In addition, Newco and Merger Sub
are entitled to seek specific performance of the terms and
provisions of the Merger Agreement with respect to the
obligations of
the Company, including seeking an injunction to
prevent or restrain breaches or threatened breaches of the
Merger Agreement by
the Company and enforcing compliance with
the covenants and obligations of
the Company under the Merger
Agreement.
The Company is not entitled to seek specific
performance with respect to the obligations of Newco and Merger
Sub, including an injunction to prevent breaches of the Merger
Agreement by Newco or Merger Sub.
Limited
Guarantee (Page 39)
In connection with the Merger Agreement, certain investment
vehicles advised by Bain Capital and an affiliate of Huawei
Technologies Co. Ltd. entered into a limited guarantee for the
benefit of
the Company, pursuant to which each party has agreed
to guaranty the obligations of Newco up to a maximum amount
equal to its pro rata share of any termination fee payable by
Newco to
the Company pursuant to the terms of the Merger
Agreement (which fee will be $66 million or
$110 million depending on the circumstances of termination,
as described more fully in
“The Merger
Agreement — Termination Fees and Expenses”
beginning on page 62). The limited guarantee is the
Company’s sole recourse against each Investor as a
guarantor, except for claims arising out of fraud against a
person that committed such fraud.
Appraisal
Rights (Page 69)
Under Delaware law, holders of Common Stock who do not vote in
favor of the proposal to adopt the Merger Agreement will have
the right to seek appraisal of the fair value of their shares of
Common Stock as determined by the Delaware Court of Chancery if
the Merger is completed, but only if they comply with all
requirements of Delaware law, which are summarized in this proxy
statement. The judicially determined appraisal amount could be
more than, the same as or less than the merger consideration.
Any holder of Common Stock intending to exercise appraisal
rights, among other things, must submit a written demand for an
appraisal to us prior to the vote on the proposal to adopt the
Merger Agreement and must not vote or otherwise submit a proxy
in favor of adoption of the Merger Agreement and must otherwise
strictly comply
8
with all of the procedures required by Delaware law. Your
failure to follow exactly the procedures specified under
Delaware law will result in the loss of your appraisal rights. A
copy of the relevant section of Delaware law is attached hereto
as Annex C.
Market
Price of Common Stock (Page 66)
Our Common Stock is listed on the Nasdaq Global Select Market
(
“Nasdaq”) under the trading symbol
“COMS.”
The closing sale price of Common Stock on Nasdaq on
September 27, 2007, the last trading day prior to the
execution of the Merger Agreement, was $3.68. The $5.30 per
share to be paid for each share of Common Stock in the Merger
represents a premium of approximately 44.0% to the closing price
on
September 27, 2007, and a premium of approximately 43.8%
to the average closing share price during the thirty
(30) trading days ended
September 27, 2007. The
closing sale price of our common stock on Nasdaq
on
January 23, 2008, the last trading day before the
date of this proxy statement, was $4.18.
9
QUESTIONS
AND ANSWERS ABOUT THE SPECIAL MEETING AND THE MERGER
The following questions and answers are intended to address
briefly some commonly asked questions regarding the Merger, the
Merger Agreement and the special meeting. These questions and
answers may not address all questions that may be important to
you as a 3Com stockholder. Please refer to the
“Summary” and the more detailed information contained
elsewhere in this proxy statement, the annexes to this proxy
statement and the documents referred to or incorporated by
reference in this proxy statement, which you should read
carefully. See “Where You Can Find More Information”
beginning on page 73.
|
|
|
|
Q. |
|
What is the proposed transaction? |
| |
|
A. |
|
The proposed transaction is the acquisition of the Company by
Newco, an entity formed by investment vehicles sponsored by Bain
Capital Partners, LLC pursuant to the Merger Agreement. Once the
Merger Agreement has been adopted by the stockholders and other
closing conditions under the Merger Agreement have been
satisfied or waived, Merger Sub, an indirect, wholly-owned
subsidiary of Newco, will merge with and into 3Com. 3Com will be
the Surviving Corporation and an indirect, wholly-owned
subsidiary of Newco. On the effective date of the Merger, Newco
will be majority-owned by and controlled by investment vehicles
sponsored by Bain Capital, and an affiliate of Huawei
Technologies Co. Ltd. will make a non-controlling, minority
investment, directly or indirectly, in Newco. |
| |
|
Q. |
|
What will I receive in the Merger? |
| |
|
A. |
|
Upon completion of the Merger, you will be entitled to receive
$5.30 in cash, without interest and less any applicable
withholding tax, for each share of Common Stock that you own
immediately prior to completion of the Merger, unless you have
properly and validly perfected your statutory rights of
appraisal with respect to the Merger. For example, if you own
100 shares of Common Stock, you will receive $530.00 in
cash in exchange for your shares of Common Stock, less any
applicable withholding tax. You will not own any shares in the
Surviving Corporation. |
| |
|
Q. |
|
When and where is the special meeting? |
| |
|
A. |
|
The special meeting of stockholders of 3Com will be held on
February 29, 2008, at 8:00 a.m. local time, at the
Company’s headquarters, 350 Campus Drive, Marlborough,
Massachusetts
01752-3064. |
| |
|
Q. |
|
What vote is required for 3Com’s stockholders to approve
the proposal to adopt the Merger Agreement? |
| |
|
A. |
|
An affirmative vote of the holders of a majority of the shares
of Common Stock outstanding and entitled to vote at the special
meeting is required to approve the proposal to adopt the Merger
Agreement. Accordingly, failure to vote in person or by proxy or
an abstention will have the same affect as a vote
“AGAINST” the Merger Agreement. |
| |
|
Q: |
|
What vote of our stockholders is required to approve the
proposal to adjourn or postpone the special meeting, if
necessary or appropriate, to solicit additional proxies? |
| |
|
A. |
|
Approval of the proposal to adjourn or postpone the special
meeting, if necessary or appropriate, for the purpose of
soliciting additional proxies requires the affirmative vote of a
majority of the votes cast by the holders of all Common Stock
present in person or represented by proxy at the special meeting
and entitled to vote on the matter. |
| |
|
Q. |
|
How does 3Com’s board of directors recommend that I
vote? |
| |
|
A. |
|
The board of directors unanimously recommends that you vote
“FOR” the proposal to adopt the Merger
Agreement and “FOR” the proposal to adjourn or
postpone the special meeting, if necessary or appropriate, to
solicit additional proxies if there are insufficient votes at
the time of the special meeting to adopt the Merger Agreement.
You should read “The Merger — Reasons for the
Merger; Recommendation of Our Board of Directors” beginning
on page 26 for a discussion of the factors that the board of
directors considered in deciding to recommend the adoption of
the Merger Agreement. |
10
|
|
|
|
Q. |
|
What effects will the proposed Merger have on 3Com? |
| |
|
A. |
|
As a result of the proposed Merger, 3Com will cease to be a
publicly-traded company and will be
wholly-owned
by Newco. You will no longer have any interest in our future
earnings or growth. Following consummation of the Merger, the
registration of our Common Stock and our reporting obligations
with respect to our Common Stock under the Exchange Act of 1934,
as amended (the “Exchange Act”) will be terminated
upon application to the Securities and Exchange Commission (the
“SEC”). In addition, upon completion of the proposed
Merger, shares of our Common Stock will no longer be listed on
any stock exchange or quotation system, including Nasdaq. |
| |
|
Q. |
|
What happens if the Merger is not consummated? |
| |
|
A. |
|
If the Merger Agreement is not adopted by stockholders or if the
Merger is not completed for any other reason, stockholders will
not receive any payment for their shares in connection with the
Merger. Instead, 3Com will remain an independent public company
and the Common Stock will continue to be listed and traded on
Nasdaq. Under specified circumstances, 3Com may be required to
pay Newco a termination fee or reimburse Newco for its
out-of-pocket expenses as described under the caption “The
Merger Agreement — Termination Fees and Expenses”
beginning on page 62. |
| |
|
Q. |
|
What do I need to do now? |
| |
|
A. |
|
We urge you to read the proxy statement carefully, including the
annexes and to consider how the Merger affects you. If you are a
stockholder of record, you can ensure your shares are voted at
the special meeting by completing, signing, and dating and
mailing the enclosed proxy card or voting by telephone or
internet. Even if you plan to attend the special meeting, we
encourage you to return the enclosed proxy card. If you hold
your shares in “street” name, you can ensure that your
shares are voted at the special meeting by instructing your
broker or nominee how to vote, as discussed below. Do NOT
return your stock certificate(s) with your proxy. |
| |
|
Q. |
|
How do I vote? |
| |
|
A. |
|
You may vote by: |
| |
|
|
|
• signing and dating each proxy card you receive and
returning it in the enclosed prepaid envelope;
|
| |
|
|
|
• using the telephone number printed on your proxy
card;
|
| |
|
|
|
• using the Internet voting instructions printed on
your proxy card; or
|
| |
|
|
|
• if you hold your shares in “street name,”
follow the procedures provided by your broker, bank or other
nominee.
|
| |
|
|
|
If you return your signed proxy card, but do not mark the boxes
showing how you wish to vote, your shares will be voted
“FOR” the proposal to adopt the Merger
Agreement and “FOR” the proposal to adjourn or
postpone the special meeting, if necessary or appropriate, to
solicit additional proxies. |
| |
|
Q. |
|
If my shares are held in “street name” by my
broker, bank or other nominee, will my broker, bank or other
nominee vote my shares for me? |
| |
|
A. |
|
Yes, but only if you instruct your broker, bank or other nominee
how to vote. You should follow the procedures provided by your
broker, bank or other nominee regarding the voting of your
shares. If you do not instruct your broker, bank or other
nominee to vote your shares, your shares will not be voted and
the effect will be the same as a vote “AGAINST”
the proposal to adopt the Merger Agreement, but will not have an
effect on the proposal to adjourn or postpone the special
meeting. |
| |
|
Q. |
|
How can I change or revoke my vote? |
| |
|
A. |
|
You have the right to change or revoke your proxy at any time
before the vote taken at the special meeting: |
11
|
|
|
|
|
|
• by notifying our Secretary, Neal D. Goldman, at 350
Campus Drive, Marlborough, Massachusetts
01752-3064;
|
| |
|
|
|
• by attending the special meeting and voting in
person (your attendance at the special meeting will not, by
itself, revoke your proxy; you must vote in person at the
special meeting);
|
| |
|
|
|
• by submitting a later-dated proxy card; or
|
| |
|
|
|
• if you voted by telephone or the Internet, by voting
a second time by telephone or Internet.
|
| |
|
|
|
If you have instructed a broker, bank or other nominee to vote
your shares, the above instructions do not apply and instead you
must follow the directions received from your broker, bank or
other nominee to change those instructions. |
| |
|
Q. |
|
What do I do if I receive more than one proxy or set of
voting instructions? |
| |
|
A. |
|
If your shares are registered differently or are in more than
one account, you may receive more than one proxy and/or set of
voting instructions relating to the special meeting. These
should each be completed, signed and/or returned separately as
described elsewhere in this proxy statement in order to ensure
that all of your shares are voted. |
| |
|
Q. |
|
What happens if I sell my shares before the special
meeting? |
| |
|
A. |
|
The record date of the special meeting is earlier than the
special meeting and the date that the Merger is expected to be
completed. If you transfer your shares of Common Stock after the
record date but before the special meeting, you will retain your
right to vote at the special meeting, but will have transferred
the right to receive $5.30 per share in cash to be received by
our stockholders in the Merger. In order to receive the $5.30
per share, you must hold your shares through completion of the
Merger. |
| |
|
Q. |
|
Am I entitled to exercise appraisal rights instead of
receiving the merger consideration for my shares? |
| |
|
A. |
|
Yes. As a holder of Common Stock, you are entitled to appraisal
rights under Delaware law in connection with the Merger if you
meet certain conditions. See “Dissenters’ Rights of
Appraisal” beginning on page 69. |
| |
|
Q. |
|
When is the Merger expected to be completed? What is the
“Marketing Period”? |
| |
|
A. |
|
We are working toward completing the Merger as quickly as
possible, and we anticipate that it will be completed by the
first calendar quarter of 2008. However, the exact timing of the
completion of the Merger cannot be predicted. In order to
complete the Merger, we must obtain stockholder approval and the
other closing conditions under the Merger Agreement must be
satisfied or waived (as permitted by law). In addition, Newco is
not obligated to complete the Merger until the expiration of a
twenty (20) business day “Marketing Period” that
it may use to complete its financing for the Merger. The
Marketing Period begins to run after we have provided certain
financial information to Newco pursuant to the terms of the
Merger Agreement; provided that the Marketing Period will not
begin prior to thirteen (13) days before the special
meeting. See “The Merger Agreement — Effective
Time; Marketing Period” and “The Merger
Agreement — Conditions to the Merger” beginning
on pages 48 and 57, respectively. |
| |
|
Q. |
|
Will a proxy solicitor be used? |
| |
|
A. |
|
Yes. The Company has engaged Georgeson Inc.
(“Georgeson”) to assist in the solicitation of proxies
for the special meeting and the Company estimates it will pay
Georgeson a fee of approximately $20,000. The Company has also
agreed to reimburse Georgeson for reasonable administrative and
out-of-pocket expenses incurred in connection with the proxy
solicitation and indemnify Georgeson against certain losses,
costs and expenses. |
12
|
|
|
|
Q. |
|
Should I send in my stock certificates now? |
| |
|
A. |
|
No. After the Merger is completed, you will be sent a
letter of transmittal with detailed written instructions for
exchanging your Common Stock certificates for the merger
consideration. If your shares are held in “street
name” by your broker, bank or other nominee you will
receive instructions from your broker, bank or other nominee as
to how to effect the surrender of your “street name”
shares in exchange for the merger consideration. Please do
not send your certificates in now. |
| |
|
Q. |
|
Who can help answer my other questions? |
| |
|
A. |
|
If you have additional questions about the Merger, need
assistance in submitting your proxy or voting your shares of
Common Stock or need additional copies of the proxy statement or
the enclosed proxy card, please (1) mail your request to
3Com Corporation, 350 Campus Drive, Marlborough, Massachusetts
01752-3064,
Attn: Investor Relations, (2) call our Investor Relations
department at
(508) 323-1198,
or (3) call our proxy solicitor, Georgeson, toll free at (866)
432-2786 (banks and brokers call (212) 440-9800). If your broker
holds your shares, you should call your broker for additional
information. |
13
CAUTIONARY
STATEMENT CONCERNING FORWARD-LOOKING INFORMATION
This proxy statement and the documents to which we refer you in
this proxy statement include forward-looking statements based on
estimates and assumptions. There are forward-looking statements
throughout this proxy statement, including, without limitation,
under the headings
“Summary,” “Questions and
Answers about the Special Meeting and the Merger,”
“The Merger,” “Opinion of Financial
Advisor,” “Regulatory Approvals” and
“Litigation