Accredited Home Lenders Holding Co. (LEND) Shares Sink on Hedgefund Backout
Shares of Accredited Home Lenders Holding Co. sank at the opening bell Monday after an investment fund backed away from a deal to buy the battered mortgage lender.
A hedge fund called Lone Star Fund V LP in June offered to buy the San Diego-based home lender for $400 million, or $15.10 per share. That price represents an enormous premium to Accredited Home Lenders' stock.
On Friday, Lone Star told the company the fund is no longer interested in the deal. Lone Star cited "the drastic deterioration in the financial and operational condition of the company, among other things."
Accredited sued Lone Star, claiming the agreement the fund signed said it could not back away from the deal because of issues affecting the entire sector, as opposed to the issues affecting just the company.
Labels: Accredited Home Lenders Holding Co., LEND
posted by Stock Administrator @ 10:33 AM
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