3Com Sees Merger Charge of $375 Million

Computer networking company 3Com Corp. said in a filing with federal regulators that it expects to incur restructuring charges of up to $375 million as a result of its merger with U.S. Robotics Corp., a maker of computer modems. The Santa Clara company and Skokie, Ill.-based U.S. Robotics completed their multibillion-dollar merger in June. 3Com said the nonrecurring costs will be charged to operations in its fiscal first quarter, which began June 1. Last month, the company said it would probably lay off about 800 people over the next year as a result of the merger. Of the 800, 600 are permanent positions and 200 are temporary. Sales increased 35% to $3.1 billion in fiscal 1997, from $2.3 billion the previous year, 3Com said in the SEC filing. 3Com stock fell 6 cents to close at $47.31 on Nasdaq.