* 3Com's new executives ready to negotiate for more of joint venture with Huawei
This week 3Com President and CEO Scott Murray resigned, saying the time commitment needed overseas to manage 3Com’s joint venture with Chinese router company Huawei Technologies.
The resignation comes after just seven months on the job.
Instability at the top is the last thing that the struggling 3Com needs, but at least the company was able to plan for the transition, which takes effect Aug. 17.
3Com appointed Edgar Masri as the new president and CEO, and he will also assume Murray’s position as chairman of the H-3C joint venture. Plus, the company has hired Bob Mao as executive vice president of corporate development to manage 3Com’s interests in the joint venture and serve on the company’s board.
All in all, this represents an important recognition of just how critical the joint venture is and what it will take to manage it.
In fact, 3Com said it is going to initiate discussions to increase its ownership stake in the joint venture. Right now the company owns 51%. Under the current agreement, 3Com and Huawei have the right, starting Nov. 15, to start to bid for the ownership stake held by the other. Through a statement by 3Com Chairman Eric Benhamou, Murray said he felt it was best that he get out before those negotiations began and the time commitment in China increased substantially.
Masri is COO at broadband technology company Redline Communications, and for six years was a general partner at venture capital firm Matrix Partners. Before that, Masri was at 3Com for 15 years. Mao is vice chairman of the board of governors of the Pacific Telecommunications Council.
