Doral Financial


surged 51% after a competing take-private offer emerged for the struggling Puerto Rican lender.

San Juan, P.R.-based Doral said it got a $610 million bid from closely held FBOP of Oak Park, Ill., that would give Doral shareholders $1.41 a share in cash and a 20% stake in the company.

The offer comes three weeks after Doral agreed to be acquired by a

Bear Stearns

( BSC) group for 63 cents a share. That deal would have left Doral shareholders with just 10% of the company.

Shares of Doral rose 66 cents Monday to $1.96.

Doral said its board of directors will review the proposal submitted by FBOP, which runs banks in California, Texas and Arizona.

Doral has had a messy couple of years. The company needed to restate earnings from 2000 to 2004 stemming from its improper use of derivatives to hedge its mortgage portfolio against interest rate fluctuations. Later, Doral found problems related to the sale of some of its mortgages to other Puerto Rican banks.

It has been embroiled in regulatory investigations related to accounting problems and has had a host of executive shake-ups as a result of the scandal.

The financing will help Doral repay $625 million in floating rate notes that mature in July and also pay for the company's $129 million settlement of shareholder lawsuits filed two years ago.

Doral also said its chief accounting officer, Cesar Ortiz, left. He'll be replaced on an interim basis by Arturo Tous, who has been senior vice president and chief financial compliance officer. Doral will search for a new chief accounting officer.