I've hit a very similar problem. In my case the device is a Logitech Wireless Presenter rather than a mouse. The hcidump output is almost identical, and I too see the "Authentication Failed" message.
-- You received this bug notification because you are a member of Ubuntu Bugs, which is subscribed to Ubuntu. https://bugs.launchpad.net/bugs/686433 Title: MS IntelliMouse Explorer doesn't pair -- ubuntu-bugs mailing list ubuntu-bugs@lists.ubuntu.com https://lists.ubuntu.com/mailman/listinfo/ubuntu-bugs