3Com Signs Investment Deal With China
3Com Corp., the world’s second-largest maker of computer network equipment, agreed to invest up to $100 million in China and said it plans to start selling its PalmPilot hand-held computer in Hong Kong and Japan. The Santa Clara-based company’s growing business in China is expected to help offset a slowdown in Japan, 3Com Chairman Eric Benhamou said. The company plans to set up a joint-venture consulting company and a research institute in China to promote its products that combine video, audio and data onto a single network. 3Com had about $150 million in sales in China last year, capturing 31% of the market for networking devices. 3Com’s shares fell $1.13 to $24.88 on Nasdaq.