Shea Lets Hostile Bid for Del Webb Lapse

California home builder J.F. Shea Co. allowed its $550-million hostile bid for Del Webb Corp. to lapse after a strong vote of confidence for Webb’s current board at its annual meeting. Shareholders of planned-community developer Del Webb voted to reelect three Webb board members at the meeting in Indian Wells over two rival nominees from private investment firm Pacific Partners, whom Shea had supported for the board seats. Arizona’s Pacific Partners has waged an aggressive campaign in the past months urging Webb management to take specific actions to boost the company’s share price, which closed down 44 cents at $25.38 on the New York Stock Exchange. The investment firm’s efforts have been encouraged by Walnut Creek, Calif.-based Shea, which in September mounted a $550-million, $30-per-share offer for Del Webb. Del Webb builds and operates adult communities in California, Arizona and Nevada under the “Sun City” name, and privately held Shea also is a developer of large-scale, planned communities. In a prepared statement, Shea said it had been able to perform only limited due diligence under the bidding process.