Shares of homebuilder William Lyon Homes fell 3.5% Wednesday after its chairman withdrew his offer to buy back all of the company’s shares he doesn’t control.
In May Chairman William Lyon offered $82 for each share outside his control. The Newport Beach-based company’s stock was trading at $95.6 on Thursday after a runup on the buyout offer.
The company said in a regulatory filing that while Lyon “remained interested in negotiating a transaction for the acquisition of the public’s shares, he did not intend to make a new bid at the company’s current stock trading levels.”
A week ago, a special committee formed by William Lyon Homes said the chairman’s offer to take the company private was inadequate. The committee was made up of several board members.
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.
Several lawsuits were filed against Lyon over the offering price. Lyon owns or controls through trusts about 72% of the company’s stock.
