Accredited Home Lenders Corp. (NDAQ:LEND) shares continued their rise today after receiving a renewed buyout bid on Friday that jumped shares more than 50 percent. The company announced a dividend today which was an indicator to some that the company wants more in a potential sale that it is keen on completing.

Lone Star announced late last week that a deal would still be possible at $8.50 per share in a deal worth $214 million. Many analysts and shareholders had questioned the previous $15.10/share bid amid concerns about the credit and mortgage markets - and for good reason! The new bid comes at a 44 percent discount.

Tough mortgage markets and credit markets prompted Lone Star attempting to back out of the bid several times. Accredited countered by suing the hedge fund in an attempt to force the sale to go through. The latest offer was extended to September 12th and the company has yet to respond.

"Under current conditions, the company may suffer further declines in value and have a difficult time serving as a going concern," Lone Star said in a letter. "It is patently clear that swift action by the board of directors is needed to preserve the company's existing enterprise value."

Many analysts and shareholders believe that the company will be forced to go through with this deal as it has already publicly stated that bankruptcy is in the cards in the event that it decides to go it alone. However, many are now guessing its motives after the company's recent decision to issue a dividend and cut its workforce. Combined, these factors make LEND a stock worth watching!

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