The Presley Cos. said Monday that its board of directors has agreed to extend negotiations until mid-October with builder William Lyon, who has previously offered to buy a controlling interest in the company for about $11 million.
Under terms of that proposed deal, Presley would buy the assets of Lyon's company, William Lyon Homes Inc., for about $48 million, giving Lyon control of both Newport Beach-based home building companies.
Presley's board also has approved the merger of Presley into a wholly owned subsidiary, pending shareholders' approval, to help preserve tax benefits. The subsidiary would be the surviving company.
The company's shares were unchanged Monday at 69 cents in trading on the New York Stock Exchange.