In a bizarre twist, Lone Star Fund V (U.S.) LP has extended its tender offer for all outstanding shares of Accredited Home Lenders Holding Co. until midnight, Aug. 28, as a court fast-tracks the troubled San Diego mortgage lender's lawsuit intended to keep the deal on course.
Accredited on Monday sued Lone Star to force it and two affiliates to complete an agreed-to $400 million takeover after the Dallas buyout firm threatened to abandon its offer amid the subprime mortgage mess. Meanwhile, the Delaware Chancery Court agreed Wednesday to hold an expedited trial in late September or October on Accredited's suit.
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Even though Lone Star has kept the offer on the table, which would have expired Aug. 14, the firm contends that the closing conditions have not been met, but Accredited believes that all conditions to closing have been satisfied.
The private equity firm said it has received about 11 million shares, or roughly 43%, of Accredited's common stock by close of business Monday. Meanwhile, Accredited said that, as of 5 p.m. Tuesday, over 97% of Accredited's shares had been tendered to the Lone Star offer.
Accredited shares rose 14% to $6.27 by Wednesday afternoon on the news of the trial date, but they were still far below the $15.10 Lone Star offer. —The Deal staff
See story from The San Diego Union Tribune
See lawsuit announcement from TheDeal.com
See buyout agreement from TheDeal.com
Tags: Accredited Home, sub prime lending, bankruptcy
