Presley Cos. said late Thursday that a special board committee rejected Chairman William Lyon’s $18-million offer to buy the debt-ridden Newport Beach-based home builder.
In a three-paragraph statement, Presley said the committee couldn’t determine if Lyon’s offer was the best it could get, and that it would seek “additional strategic alternatives.”
Earlier this month, Presley said it received a $28-million extension to its credit line and a longer repayment period, moves that would give it breathing room.
The company, which has $240 million in debt stemming from the early 1990s recession, builds homes in California, Arizona, New Mexico and Nevada.
Lyon already owns 15% of Presley, and his 40-cents-a-share bid earlier this month represented a 36% discount to Presley’s stock price at the time. His offer was due to expire today.
Presley shares closed Thursday at 63 cents, down 6 cents, in New York Stock Exchange trading.
Lyon couldn’t be reached for comment.