Can you Lend me $15.10?

OFFER TO PURCHASE FOR CASH

ALL OF THE OUTSTANDING SHARES OF COMMON STOCK

OF

ACCREDITED HOME LENDERS HOLDING CO.

AT

$15.10 NET PER SHARE

BY

LSF5 ACCREDITED MERGER CO., INC.

A WHOLLY-OWNED SUBSIDIARY OF

LSF5 ACCREDITED INVESTMENTS, LLC

Anyone notice the strange action in Accredited Home (LEND 6.94)? They have a cash tender offer bid on the table of $15.10 by Lone Star Funds. The August 3rd SEC filing by LEND indicates that they expect a third quarter closing of the tender offer. So who is Lone Star? From the filings:

"Lone Star is a leading U.S. private equity firm. Since 1995, the principals of Lone Star have organized private equity funds totaling more than $13.3 billion to invest globally in corporate secured and unsecured debt instruments, real estate related assets and select corporate opportunities. Additional information may be found at www.lonestarfunds.com."

and from Lone Star Funds website regarding Lone Star Fund V

http://www.lonestarfunds.com/En/lonestarfunds_v.htm

Lone Star Fund V (U.S.), L.P. and Lone Star Fund V (Bermuda), L.P. (collectively, Lone Star Fund V) were organized in September 2004 with $5.0 billion in combined capital commitments. Lone Star Fund V is targeting financial and real estate assets on a global basis, focusing on investments in secured and corporate unsecured debt, portfolios of distressed real estate and financially-oriented operating companies.

According to Cramer, (and he had training as a lawyer) he says the merger agreement is iron clad. He even put a video out on it. I read the document; and it seems tight to me, but I'm not a lawyer.

Does Lone Star know what they are getting into?

Well, in October of 2003, in the depths of the Korean crisis, they put $1.4 Billion for 50.5% of Korea Exchange Bank. It tripled. Now people are saying Lone Star undervalued the stake in the Korean bank when they bought it. So they know what they are doing, and they know what they are getting into.

Maybe Wall Street doesn't and LEND deserves another look.