Network equipment maker 3Com said Wednesday that it had shelved (at least temporarily) plans to sell itself to private equity firm Bain Capital and to Huawei Technologies of China as a result of the parties’ inability to reach a mitigation agreement with the Committee on Foreign Investment in the United States (CFIUS) concerning the national security implications of the deal. Last September, Massachusetts-based 3Com accepted an offer of $5.30 per share from Bain and Huawei, which is said to have strong ties to the Chinese government and which would have emerged with a 16.5% stake in 3Com upon completion of the $2.2 billion transaction. CFIUS, a body consisting of 12 U.S. government agencies that advises the White House on national security issues stemming from mergers between U.S. and foreign companies, objected on grounds that sensitive technologies could be transferred to China via Huawei, as 3Com’s Tripping Point subsidiary is a supplier of network security services to the U.S. Department of Defense. In hopes of winning CFIUS approval, Bain and 3Com offered several concessions last week that reportedly included an offer to divest Tripping Point. A filing submitted to the Securities and Exchange Commission on Tuesday indicated that 3Com shareholders would receive between $4.50 and $5.00 per share in the event Tripping Point was sold. Nevertheless, 3Com withdrew its application on Wednesday, as 3COM CEO Edgar Masri acknowledged: “we are very disappointed that we were unable to reach [an] . . . agreement with CFIUS for this transaction.” Vowing to “work closely with Bain Capital and Huawei to construct alternatives that would address CFIUS’ concerns,” Masri promised to “continue to execute our strategy to build a global networking leader.”