However, the companies remain committed to continuing discussions to find a way forward for the agreed deal, 3Com Corporation said.

The companies had made the joint filing with the Committee on Foreign Investment in the United States (CFIUS), an interagency government panel that reviews the national security implications of foreign investment.

3Com, a Marlborough, Massachusetts-based provider of secure and converged networking, said it was "very disappointed" that the parties were unable to reach a mitigation agreement with CFIUS.

3Com's board unanimously approved a merger agreement with affiliates of US private equity firm Bain Capital Partners for about 2.2 billion dollars in cash on September 28.

In a regulatory filing to the Securities and Exchange Commission in October, 3Com said the deal calls for China-based Huawei to hold a 21.5 percent stake in 3Com but the Chinese firm "will have no operational control over 3Com and no ability to make decisions for it."

3Com stated that Huawei "will not have any access to sensitive US-origin technology or US government sales as a result of this transaction."

Edgar Masri, 3Com president and chief executive, on Wednesday expressed the commitment of the three companies to proceed with their merger.

"While we work closely with Bain Capital Partners and Huawei to construct alternatives that would address CFIUS' concerns, we will continue to execute our strategy to build a global networking leader," Masri said.

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