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Article: Lawsuit is latest obstacle to Accredited Home Lenders, Lone Star Deal: $400 million sale is 'sunk,' analyst says.
- Article from:
- San Diego Business Journal
- Article date:
- August 20, 2007
- Author:
CopyrightCOPYRIGHT 2007 CBJ, L.P. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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The sale of Accredited Home Lenders Holding Co. to Lone Star Fund may still happen, but recent developments, including the filing of a lawsuit against the prospective buyers, have muddied the waters.
One thing for sure is Lone Star, a Dallas-based private equity fund, is looking for a way out of its tender offer of $15.10 per share, or about $400 million for Accredited. The troubled San Diego subprime lender struck its deal with Lone Star in June, and has been hanging on for much of this year while many other mortgage companies fail or file for bankruptcy.
In a securities filing Aug. 10, Lone Star said Accredited would be unable to fulfill all the ...