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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