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Huawei ups proposed stake in 3Com

Shenzhen-based telecom equipment maker Huawei has announced that it is raising its proposed investment in 3Com raising to the maximum 21.5%, the Wall Street Journal announced. Huawei announced last week that it was seeking a 16.5% stake in the US-based company in partnership with Bain Capital. The proposed deal raised concerns that Huawei, which is reported to have close ties to the Chinese government, might be able to gain access to restricted US technology if the deal goes through. Chinese industry experts have denied such claims, saying that the deal fits with Huawei's strategy of foreign development. Huawei agreed that it would not have any operational control over 3Com if it is successful in its bid attempt.

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