The shares of Accredited Home Lenders were halted at $11.76 after investment group Lone Star reported that it has completed its acquisition of the beleaguered mortgage lender for $11.75 per share.
When the buyout bid was initially made in June, Lone Star set its price at $15.10 per share. However, continuing deterioration in the mortgage market helped along by continuing subprime fallout gave Lone Star cold feet. LEND eventually filed suit to hold Lone Star to its word, which resulted in Lone Star offering a lowball bid of $8.50 per share.
While LEND rejected that particular offer; it's easy to see why Lone Star balked. From early June to the beginning of August, the shares of LEND lost 65% of their value. The final buyout price represents a total decline of 67% from LEND's annual high of $35.97.