Lone Star buys Bear Stearns mortgage assets

The Texas private equity firm has purchased ‘certain operating assets’ from the US investment bank, which was sold last week to JPMorgan.

Lone Star Funds has paid an undisclosed sum for unspecified assets from Bear Stearns’ residential mortgage unit – its second such known deal for US residential mortgage assets since October.
“A Lone Star Funds' subsidiary and a Lone Star Funds' affiliate have acquired certain operating assets and rights to certain operating assets of Bear Stearns Residential Mortgage, respectively,” a spokesman for the Texas-based private equity firm said in a statement.
“The firm does not intend to comment further on this matter,” he added.

Lone Star purchased residential mortgage company Accredited Home Lenders in October 2007 for $311 million (€201 million) after a series of long, litigious negotiations.
The $11.75 share price finally agreed upon represented a significant cut from Lone Star’s original $15.10 per share offer for Accredited, but was higher than an offer of $8.50 per share that was made after what Lone Star said was “drastic deterioration in the financial and operational condition of the company”.