Accredited Home Lenders saga coming to an end
My second blog on CAPS, or anywhere else for that matter, was on private equity firm Lone Star's offer to buy Accredited Home Lenders (LEND) for what seemed like a ridiculously high price of $400 million or $15.10 per share back in June. I was somewhat skeptical and thought it was more than a little curious that a buyer could come up with a price for the company when quarterly reports hadn't been filed for some time.
With the deterioration of the mortgage market over the summer, LEND traded below, sometimes way below, the buyout price as investors gambled the deal wouldn't go through.
Subsequently, Lone Star attempted to lower the offer price to $8.50 a share. LEND balked and started legal action to force Lone Star to complete the deal at the original $15.10 price.
On Wed of this week, the two firms renegotiated the buyout price to $11.75 a share. That looks like it'll close this chapter of mortgage lender mania.
I have no financial interest in LEND or Lone Star.