Accredited Home Lenders announced it had agreed to Lone Star's takeover bid of $295 million. The deal will replace the $400 million purchase that was originally agreed upon in June, before the credit crisis put the deal in jeopardy. In the new transaction, Lone Star will pay $11.75/share, and Accredited will, as part of the agreement, drop all suits against Lone Star (full story). The buyout price is a compromise between the original offer price of $15.10 and the $8.50 Lone Star offered in August. "This new agreement fairly settles our dispute and will expedite the completion of the merger with Lone Star. We will now turn to the business of rebuilding Accredited for a brighter future with Lone Star," said James A. Konrath, CEO of Accredited. The company's shares were up 18.1% to $11.54 in midday trading Wednesday.
Sources: Press Release, WSJ, Bloomberg
Commentary: Accredited Home Lenders Gains Backing of Stark Investments • Regulators to Lenders: Act Now to Prevent Foreclosures
Stocks/ETFs to watch: LEND. Competitors: CFC, FNM. ETFs: KBE
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