Private equity firm Lone Star said on Tuesday it is extending its tender offer for outstanding shares of subprime mortgage lender Accredited Home Lenders Holding Co ... to Aug. 28. Lone Star said it had received about 11 million shares, or 43 percent of Accredited Home's common stock, at the close of business on Monday.Looks like I was correct earlier in surmising that not enough shares had been tendered, which is why Accredited had earlier issued a press release urging shareholders to pony up their holdings. This is second such deadline extension made by Lone Star -- the first came on July 30, when Lone Star said that 33 percent of shares had been tendered. Given the lawsuit now in motion and the apparent exercise of restraint here by Lone Star, not to mention what I've read from various analysts that have suggested the "material adverse change" clause sits in Accredited's favor, I'd have to hazard a guess that Lone Star is looking to force a repricing of the original deal.
Lone Star Extends Tender Offer Deadline for Accredited