Accredited Sues Lone Star

Lone Star's move to nix the deal came after Accredited said Friday morning that state regulators had approved it. Lone Star had originally agreed in June to acquire the lender for $15.10 a share. Shares of Accredited fell $2.69 to $6.21 on Monday.

This summer the credit markets dried up after a wave of leverage buyouts fueled the M&A boom over the last few years. Since June, many deals have been postponed or canceled as the bond and loan financing markets seized.

And while there is a market for distressed assets, such as Accredited's, buyers in the sector surely don't want to be paying top dollar as the subprime mortgage crisis lingers and further problems are revealed.

Valentin suggests that Lone Star's announcement is possibly a smokescreen to renegotiate the deal at a lower price.

"Maybe they do want the deal canceled," Valentin says. "But maybe in the back of their mind the worst-case scenario is the deal is negotiated lower. They save ... money on the negotiation and the cost of doing this is minimal compared to the benefits received."

Accredited said in a statement that it believes all conditions to closing have been satisfied, as long as 50% of shareholders tender their shares by the Aug. 14 deadline. It said it sued "to hold Lone Star to its obligations, and to hold it fully responsible for any damages caused by its failure to satisfy those obligations."