Lone Star Cuts Bid for Accredited by 43%

Accredited Home Lenders of San Diego -- but for 43% less than it offered back in the spring.According to a statement issued by Accredited, Lone Star is willing to pay $8.50 a share for the subprime lender/servicer, compared with an original price of $15.10 (or $400 million). Based in Dallas, Lone Star had tried to back out of the original deal but was sued by Accredited. The subprime lender's management is encouraging its board to approve the new offer. In trading Friday, Accredited's shares were trading up 40% at almost $9 a share. The lender recently cut staff and stopped funding many new loans as a way to preserve capital. Among subprime lenders, it ranks 18th, according to the Quarterly Data Report. Accredited can be found online at http://www.accredhome.com.