Lone Star Funds has extended the deadline on the proposed $400 million acquisition of Accredited Home Lenders Holding by two weeks to Aug. 28, reports The Wall Street Journal. The change is a result of a requirement in the merger agreement that forces Lone Star to extend its acquisition offer by no more than 10 days in case all of its conditions are not met.
Lone Star made a $15.10 offer-per-share in June but Accredited has suffered as of late amid general weakness in the subprime mortgage lending market. Lone Star has discussed backing out of the deal.