The saga of Bain Capital LLC and China's Huawei Technologies attempt to purchase 3Com Corporation (NASDAQ: COMS) continues as the company postponed a shareholder meeting for the second time.

On February 20th, 3Com, Bain, and Huawei withdrew their application for approval of the deal by CFIUS. The Committee on Foreign Investment in the United States, an arm of the Treasury Department, had expressed national-security concerns about China's participation in the $2.2 billion deal through Huawei.

Specifically, 3Com provides some network security solutions to the U.S. Defense Department, and Huawei's strong ties to China's Communist government raised serious concerns. Many thought the withdrawal of approval meant the deal was as good as dead, but on February 29th it was announced that all three parties planned on reapplying for approval - supposedly with similar financial terms. The major change would be some measure to block Huawei's access to sensitive technologies that stymied the deal originally.

As a result of this announcement, 3Com postponed its shareholder meeting and rescheduled it for March 7, giving it more time to negotiate with Bain and Huawei; however, since no agreement has been reached, the meeting has been delayed another two weeks to March 21.

The real question becomes - with 3Com seemingly intent on a deal, is 3Com stock a bargain? The originally proposed $2.2 billion deal was worth more than $5 per share, and even a renegotiated deal, if it were to get regulatory approval, would almost certainly be no more than 15% lower than the first offer as 3Com's Defense Department contracts are not huge revenue or profit centers. With 3Com currently trading at $3.19 a share, there is more than $1 of upside potential if a deal that withstands regulatory scrutiny is reached - and that definitely makes 3Com a risky but potentially profitable opportunity right now.

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