Lone Star Completes Merger with Accredited Home
An affiliate of private equity investor Lone Star Funds said this morning that it has successfully completed a tumultous merger with troubled subprime originator and servicer Accredited Home Lenders Holding Co. Lone Star successfully pushed to have the purchase price dropped from $15.10 per share under terms of the original sale agreement announced in June, to a final purchase price of $11.75 per share, or roughly $296 million. The two companies agreed to an amended merger and revised purchase price in mid-September. The purchase means that only two members of Accredited's original Board of Directors are still active: CEO James Konrath and president Joseph J. Lydon. Lone Star appointed six of its own representatives to the Board.