The Drama Award Today goes to 3Com Corp.

Last year, Bain Capital Partners LLC and Huawei Technologies Co. of China agreed to acquire 3Com for $5.30 a share. Great news, but the Committee on Foreign Investment in the United Statescan block the acquisition of U.S. companies by foreign firms if such deals are seen as threats to the nation's security.

CFIUS has rarely taken that action, however Bain and Huawei withdrew their bid from CFIUS last month and attempted to strike a revised deal with 3Com to no dice.

By voting for the deal, though, shareholders could ensure 3Com's right to pursue a breakup fee from Bain and Huawei.

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3Com had already postponed two shareholder votes as it attempted to strike a new deal with its two partners. In recent talks, the three companies have been looking for ways to minimize the role of Huawei in parts of 3Com's business that serve the U.S. government.

Although it's a relatively small player in the networking market, 3Com sells anti-hacking and other network-security services to the Defense Department.

The U.S. has been particularly sensitive about foreign ownership of communications assets, especially in light of repeated attempts to hack the nation's defense systems. Chinese-based hackers are viewed as a major concern.

3Com is now worth $900 million thanks to shares falling to just over $2, that's a $1.3 billion discount from the Bain and Huawei deal.  If the powers that be can make this deal happen, Bain and Huawei could pick up 3Com for a lot less than the original offer and at today's $2 share price, it could happen.  The last 3 months has killed 3Com shares, just look at the ride:

However the issue of national security is a big one, and if Sirius (SIRI) XM deal can't get the time of day, what chance does the 3Com sale stand?

I know, you can't compare the two deals, but it puts it into perspective when you think of our government holding up big money deals for the benefits of investors trying to make their 401K's and IRA's more valuable because Social Security will be done by the time Generation X & Y retire. 

Fellow Masters, there's time to watch this stock and if the situation improves with a 3Com sale, you'll have time to get in on the stock.  Big money has a funny way of winning in the end, so maybe there's at least 1 point to be gained on 3Com shares if something positive works out in the coming weeks.

Disclaimer: The author does not have any positions in 3Com.