Monday, September 3, 2007

More on Accredited & Lone Star

The details on Accredited Home Lenders and Lone Star’s merger negotiations are being discussed like a soap opera plot these days, with some writers calling Accredited the “love interest” of Lone Star. Unfortunately, Lone Star seems to find the lender less attractive these days, but Accredited refuses to sell itself at a lower price. On Friday, the mortgage company rejected Lone Star’s proposal and said it “will continue to pursue its lawsuit”. In an unexpected turn of events, this resulted in Accredited shares moving up 43% on Friday, to $9.05. And Lone Star wanted to buy this stock at $8.50? No way… Honestly, I still think Accredited should have accepted the new bid, or perhaps Lone Star should have given up, but obviously, the story line wasn’t written by me.

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