A special committee formed by Newport Beach’s William Lyon Homes said the chairman’s offer to take the company private is inadequate.
William Lyon, who owns a majority of the homebuilder’s stock, has offered $82 for each share outside his control.
The committee, made up of several board members, issued a terse statement late Monday that did not explain its reasoning or suggest an appropriate buyout price.
It said the proposal was reviewed with input from financial adviser Credit Suisse First Boston LLC, a unit of Switzerland’s Credit Suisse Group, and the law firm of Skadden, Arps, Slate, Meagher & Flom LLP of New York.
Lyon and other board members face several lawsuits alleging his offering price is too low.
William Lyon shares closed up 1.7% to $92.5 Tuesday.
