William Lyon CEO Begins Offer for Company
NEWPORT BEACH, Calif. — The chairman and chief executive of William Lyon Homes on Friday said he began an offer to buy all outstanding common shares of the homebuilding company that bears his name for $93 apiece, without interest and minus any required withholding taxes.
The offer represents a 23 percent premium over the stock's closing price of $75.70 on Thursday on the New York Stock Exchange.
Shares surged $19.04, or 25 percent to $94.74 in premarket trading on the Inet electronic exchange. The stock has traded in a 52-week range of $70.75 to $165.85.
Gen. William Lyon, chairman and CEO, currently owns 4.1 million shares, or 47.6 percent, of the company's outstanding common stock and controls about 50.4 percent of the total voting power. Through his trusts, he owns a total of 74.5 percent of shares.
The offer, which expires April 13, stipulates that enough shares must be tendered so that they, plus the shares Lyon already owns, must equal at least 90 percent of the stock.
If completed, Lyon, The William Harwell Lyon 1987 Trust and The William Harwell Lyon Separate Property Trust will contribute all shares into William Lyon Homes. The company could not immediately be reached for comment.
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