Golden West to Review Lyon’s Offer Next Week

Though the William Lyon Co. had requested an answer to its offer to buy out public shareholders of Golden West Homes for $9.3 million, or $3.75 a share, directors of the Santa Ana manufacturer of mobile homes and factory-built housing hadn’t yet met as the weekend began.

Jack D. Steele, head of a three-member committee of Golden West directors that will review the offer, said that because of logistical problems the committee will not be able to meet until sometime next week.

Steele said he hoped a decision on Lyon’s offer will be made quickly to allay the volatile effect of uncertainty on Wall Street’s valuation of Golden West’s stock. Word of Lyon’s impending offer apparently leaked to investors before Golden West’s announcement.

On Wednesday afternoon, the company’s shares closed at $4.50, up $1.25 a share and 75 cents a share higher than Lyon offered for the 2.4 million outstanding shares. On Thursday and Friday the stock closed at $4 a share.

Steele said he was unable to understand the reasons for the erratic fluctuations in the trading price of Golden West’s stock. He said Golden West’s directors will rely on an outside investment banker it has hired to determine the stock’s “fair price.” He said the investment banker, which he would not identify, will “be looking at all the financial data (of Golden West),” not at the stock market.