Citadel Holding dropped its acquisition plan.

The Glendale-based parent of Fidelity Federal Savings & Loan said it no longer believed that acquiring another firm was the best means of “maximizing shareholder value.” Earlier this week, Chairman Spencer Scott said Citadel had authorized its investment banker to seek companies interested in a merger or acquisition deal. The company has been involved in a proxy fight with a group of dissident shareholders who are seeking seats on the Citadel board with an eye toward selling the state’s 18th-largest thrift.