As widely reported throughout the day, Huawei Technologies offcials have publicly criticized the U.S. security concerns which have surfaced in the 3Com Corporation (COMS) - Bain Capital transaction.
Unfortunately for Huawei, and all parties involved in this transaction, attempts to dissuade U.S. politicians and/or the CFIUS from rejecting this deal as structured will fall upon deaf ears. Whether or not legitimate security concerns actually exist here is essentially irrelevant. The perception that security concerns exist is now fully entrenched and will not change as long as Hauwei has an interest in the buyout of COMS. Verbal attacks on U.S. officials will only serve to exacerbate this issue, rather than convince politicians and regulators that they are in error.
Huawei's outburst in now way changes the outlook for this transaction. The perception remains that this deal has very little, if any, chance of successful completion under the current conditions.
Disclosure: We have no positions of any kind, in any security. We are a completely neutral source of research and analysis.