Your quote noted "(iii) the Comp..." what's the other two items that are
missing in the quote? And also if they satisfied that condition Lone
Star can still argue that scaling down was done too late because of
that the company lost x amount of money and LEND suffered irreparably.
-All of that is true. Also some forget that Lone Star has other
options:

1)      Appeal the decision of the court in unlikely case LEND wins.
2)      Continue with counterclaim and there would be a hold on any
forcible buy.

A counter offer does not weaken LS claim on the contrary it
strengthens it because they made a good faith attempt to settle this
thing in everyone's favor but that did happen because management/board
got greedy.

Again if I had my shares tendered, I would pull them out and sell them
immediately there is no reason to risk everything for five more bucks.
The stock is at a good level right now. Some are just hoping that Lone
Star would increase the bid again. I think the board is simply
bluffing they should have taken the offer immediately.