Article: Texas equity firm acquires accredited home lenders in $400m deal: sale salvages business dinged by mortgage delinquencies, defaults.(Lone Star Funds )

With the subprime lending industry in upheaval and facing increased constraints, the management of Accredited Home Lenders Inc. said they selected the best alternative in selling the company to a Dallas private equity firm.

Last week, Accredited signed an agreement to be acquired by Lone Star Funds for $15.10 per share, or an aggregate $400 million in a deal that allows the mortgage lender to survive, at least for a while.

Lone Star obviously saw some value in the purchase, offering 10 percent above the prior trading day's stock price, and gave an optimistic outlook for the future.

"With our additional experience and capital, we are confident ...

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